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It's basically gonna suck for all islands except for Oahu. The 'outer' islands don't have harbors big enough for the huge container ships. Those come into Honolulu, get downloaded there and then the containers for the outer islands are trans-shipped via Young Brothers. There are no other options other than YB for inter-island ocean freight.
Outer islands already have higher prices for food shipped in because of the additional shipping costs, this isn't gonna help. There's also agricultural products going out from the outer islands to Oahu, so those prices on Oahu will go up, too. Things are tight and gonna get a lot tighter and this isn't gonna help at all.
Some things can be shipped inter-island via air, although that's usually much more expensive than ocean freight. Although the rates may be closer to parity with this increase. The other difficulty with shipping via air is that with this virus, there's a lot less planes flying around. I tried shipping something to Oahu from Hawaii island last week and the little planes I prefer to use weren't able to do it because due to lack of passengers, they weren't going to fly all the way to Oahu but the flight was going to end on Maui. So, I had to wait a day and go to the much larger airport and pay twice the price. Since I'd quoted a price on the smaller airline's shipping rates, there went the profit from that transaction.
Outer islands already have higher prices for food shipped in because of the additional shipping costs, this isn't gonna help. There's also agricultural products going out from the outer islands to Oahu, so those prices on Oahu will go up, too. Things are tight and gonna get a lot tighter and this isn't gonna help at all.
It is definitely a double hit for the outer islands. And exposes another setback for farming within Hawaii. And a rate hike like this hits hard, as these are not large container ships like those coming into Honolulu so the hike will have a meaningful impact.
Oahu doesn't have a reliance on any products from the outer islands. Sure, there are some niche products like Kona coffee, macadamia, beef, some fruits and vegetables - all of which can be shipped (except Kona coffee) from other countries/mainland more cheaply to Oahu
It is definitely a double hit for the outer islands. And exposes another setback for farming within Hawaii. And a rate hike like this hits hard, as these are not large container ships like those coming into Honolulu so the hike will have a meaningful impact.
Oahu doesn't have a reliance on any products from the outer islands. Sure, there are some niche products like Kona coffee, macadamia, beef, some fruits and vegetables - all of which can be shipped (except Kona coffee) from other countries/mainland more cheaply to Oahu
Yes. This primarily is going to affect outer islands only. Keep in mind that it's not only affecting exports to oahu, but exports to the mainland and elsewhere since hawaii shipping is basically hub and spoke, with Oahu being the hub. It's too bad the outer island peeps killed off the superfairy. It would at least have given them an alternative for smaller businesses to ship vehicles and goods to oahu without being utterly reliant on YB and passenger jets. I think YB charges something like 3X the rate that superfairy did for vehicles. Now a 50% increase to rates?? Insane. lol Reap what you sow.
What is the fraction of shipping cost for inter-island vs. from mainland?
That is, if goods are being shipped from the mainland, there is the cost to get it to Honolulu, and then the cost to ship to outer island. I don't think YB does the trans-pacific portion, so this rate change does not affect that.
If the inter-island portion is 50% percent of the cost, that is still a huge impact. If it is 10% of the total cost, it may not be that big of an impact.
I am assuming most goods coming to the outer islands come from the mainland, not sourced from Oahu?
What is the fraction of shipping cost for inter-island vs. from mainland?
That is, if goods are being shipped from the mainland, there is the cost to get it to Honolulu, and then the cost to ship to outer island. I don't think YB does the trans-pacific portion, so this rate change does not affect that.
If the inter-island portion is 50% percent of the cost, that is still a huge impact. If it is 10% of the total cost, it may not be that big of an impact.
I am assuming most goods coming to the outer islands come from the mainland, not sourced from Oahu?
This is all going to come down to what is shipping. Is this a container being shipped with thousands of cans of corn - if so, one probably see a few cents per can added. Are you shipping a personal car - you'll notice the increase. A container full of washers and dryers versus cans of corn will be the difference between cents or dollars of an increase.
What is the fraction of shipping cost for inter-island vs. from mainland?
That is, if goods are being shipped from the mainland, there is the cost to get it to Honolulu, and then the cost to ship to outer island. I don't think YB does the trans-pacific portion, so this rate change does not affect that.
If the inter-island portion is 50% percent of the cost, that is still a huge impact. If it is 10% of the total cost, it may not be that big of an impact.
I am assuming most goods coming to the outer islands come from the mainland, not sourced from Oahu?
its already very significant.... it costs something like 1100 to ship a 40 footer from cali to hawaii. shipping 20 footers to neighbor islands is already like 700 or 800. with 50% increase, itll cost the same to ship a 20 footer from honolulu to outer island as it would cost to ship a 40 footer from cali to honolulu. lol
Produce and meat will be reduced coming into Oahu from the outer islands...It's already challenging for farmers as the shipments are only once a week, they have to store their produce for days and picking it.
Produce and meat will be reduced coming into Oahu from the outer islands...It's already challenging for farmers as the shipments are only once a week, they have to store their produce for days and picking it.
supposedly one of the stipulations is to resume 2x a week operations to big island. not sure about tge other islands
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