HONOLULU — Young Brothers Ltd. will eliminate its fuel price adjustment for the next three months, starting today, a news release states. In a filing with the Public Utilities Commission on Monday, Young Brothers stated that for this period there
HONOLULU — Young Brothers Ltd. will eliminate its fuel price adjustment for the next three months, starting today, a news release states.
In a filing with the Public Utilities Commission on Monday, Young Brothers stated that for this period there will be no fuel price adjustment, or fuel surcharge, applied to any freight charge under its tariff filed with the PUC.
From December through February, Young Brothers’ FPA was 6.57 percent.
“We are pleased with this development as this effectively reduces cargo rates for our customers by 6 percent,” said Roy Catalani, vice president of Strategic Planning and Government Affairs for Young Brothers, in a statement. “If fuel prices remain at or near current levels, our customers will not see any form of fuel surcharge this year.”
Under its tariff, Young Brothers reviews and, if necessary, adjusts the FPA every three months. Young Brothers will again review its FPA in June.
The FPA is based upon the average cost of fuel over the preceding three-month period as well as cargo volumes and the amount of fuel used.
“With the rising cost of energy and increasing environmental concerns about the sustainability of the transportation industry, we have been implementing multiple programs to reduce our fuel consumption,” said Catalani.
As an example, Catalani cited Young Brothers’ ongoing program to replace its existing barges with a new generation of larger, state-of-the art vessels — including the Ho’omaka Hou, which went into service in November 2007, the Maka’ala, which went into service in July, and the Kala’enalu, which went into service in December, along with a fourth new barge, the Ha’aheo, which will go into service this year.
These new barges can carry 40 percent more cargo than the barges they replace, allowing Young Brothers to readily meet the needs of customers with fewer sailings, the release states.
Moreover, the hull design for the new barges provides for less resistance at the waterline, resulting in faster towing speeds and conservation of fuel consumed by the towing tug.
Young Brothers provides inter-island cargo service throughout the state, with ports in Honolulu, Kahului, Molokai, Lanai, Nawiliwili, Hilo and Kawaihae.
On the Net: www.youngbrothershawaii.com
