The recent article about Young Brothers’ (YB’s) financial troubles certainly garnered many disparaging comments from readers (“Shipping lifeline at risk,” May 27, Star-Advertiser); the editorial two days later did much the same (“Take hard look at Young Bros. plea,” Our View, May 29). It’s a sad realization that many people here in Hawaii have such disdain for a 100-plus-year-old local company like YB. Most comments demonstrate Hawaii residents have little understanding of how our ocean transportation industry serves this island state.
In response to YB’s request for financial support, reader comments demanded eliminating the Jones Act, to bring back the Superferry, dump all the labor unions, and to bring in more competition. Wow!
Let’s pretend the Jones Act was gone tomorrow. No other ship or tug/barge owner is going to “come running” into Hawaii’s maritime transportation market that provides a limited cargo volume while guaranteeing high operating expenses. Foreign or American, you’d have to possess the financial clout to weather a long period of loss taking operations before realizing a profit, if at all. And where would they operate? There is physically no room within all our commercial ports to accommodate any more cargo carriers.
Information provided by YB show operational costs associated with cargo handling are nearly double the voyage costs related to actual tug/barge operation. Elimination of the Jones Act will only impact the vessel operation of YB. The requirements of the Jones Act have nothing to do with labor costs on shore at all cargo terminals throughout the state. The wages of longshoremen (anywhere) will never be changed by getting rid of the Jones Act. This is often misunderstood and repeated with any article about Hawaii’s maritime industry.
Who would want to provide service to Molokai and Lanai? Cargo throughput is so low and freight rates are kept low (by the current regulatory scheme imposed by the PUC) so as to be reasonably affordable by those island residents. Even if it means YB operating at a loss. I suspect many of the disparaging comments aimed at YB are from readers that likely reside on Oahu.
The Hawaii Superferry was a tremendously positive opportunity for residents statewide in ways most people cannot appreciate even today. But its time we all grasp the reality that the Superferry, or any other service like it, will never come back to these islands. Never. Investors, builder and operator were all present at the right moment in time. They tried, but were shut down by environmental litigation.
Given the time critical nature of their situation, it would be best to let YB President Mr. Jay Ana recommend all that they can do ASAP to lower operating costs, cut losses, and make changes to their overall operation so they can operate as efficiently as is possible. Realistically, what alternative do neighbor island residents have in the immediate future?
Working on the waterfront for more than 30 years, I’ve seen YB go through a few changes. I can’t fathom what other company could show up tomorrow, set up a scheduled interisland cargo service, offer lower freight rates, and do as good a job, or better. It’s not as easy as so many locals think it must be.
Let YB’s proposals go into effect, grant some rate relief immediately, allow for a modest long-term COLA (cost of living allowance) increase on an annual schedule, and see where the remainder of this year takes our economy.
Like so many other residents, I’m ready to see our local economy get back on track as soon as is reasonably possible. I’d like to see YB and their employees do another 100 years serving all Hawaii nei.
Capt. Ed Enos has been a state harbor pilot for 26 years; he is a graduate of the California Maritime Academy.
