Vehicles drive increase in cargo shipments between islands

In another positive sign for Hawaii’s economy, intrastate cargo shipments rebounded in the second quarter after declining for the first three months of the year, Young Brothers Ltd. reported Friday.

Shipments between Hono-lulu and six neighbor island ports rose 4.4 percent during the April-to-June quarter from the same period a year earlier, the company reported in its Young Brothers Quarterly Shipping Report. That follows a 3.9 percent drop in the first quarter from the same quarter a year earlier. Shipments for the first six months of the year are up 0.1 percent from the same period in 2012.

"Cargo volumes turned around in the second quarter," Young Brothers President Glenn Hong said. "We are optimistic for continuing signs of strength from important sectors of the economy, such as the construction industry."

Shipments increased during the second quarter at all but one neighbor island port. The lone decline was at the Hawaii island port of Kawaihae, which experienced a 1.9 percent drop in volume.

Kahului, the highest-volume neighbor island port, handled 3.6 percent more cargo in the second quarter. Cargo volumes were up 6.7 percent at Hilo Harbor; 7.9 percent at Nawiliwili, Kauai; 10.5 percent at Kaunakakai, Molokai; and 12.2 percent at Kaumalapau, Lanai.

Nearly half of the second-quarter growth in cargo volume was driven by higher vehicle shipments, according to the report. Construction materials, agricultural products and biodiesel shipments also contributed to the increase, Hong said. Shipments for the U.S. Postal Service declined.

The increased vehicle shipments are in line with a report earlier this month from the Hawaii Auto Dealers Association that showed registration of new cars rose 16.6 percent in the second quarter from the same period in 2012.

Shipments of agricultural products rose 11.1 percent in the second quarter from a year earlier, according to the report. That was up from an increase of 1.2 percent in the first quarter. Young Brothers provides a discount of 30 percent to 35 percent for locally grown agricultural products.

The increase in shipping volumes suggests a pickup in economic activity on the neighbor islands. Economic growth in Hawaii is continuing to gain momentum after being dealt a significant setback by the 2008-2009 recession.

The state Department of Business, Economic Development and Tourism recently forecast inflation- adjusted economic growth to accelerate to 2.6 percent in 2013 from 1.6 percent in 2012.