Public Utilities Commission approves temporary rate increase for Young Brothers

Hawai‘i Public Utilities Commission on Friday approved a limited temporary rate increase for Young Brothers in response to claims that financial distress threaten its ability to provide interisland shipping services.

The commission OK’d an 18.1% temporary rate increase.

It is based on an assessment of the minimum amount necessary to allow the company to continue providing essential interisland shipping services while the commission completes a review of the firm’s request of a 25% general rate increase.

Effective July 1, the temporary rate increase will run through Dec. 31, or until the pending general rate increase request by Young Brothers is decided — whichever comes first.

The short-term increase is aimed at minimizing customer impact from a general rate increase and any adverse effect on service.

Young Brothers also is required to conduct community meetings — including hybrid options on each affected island — to explain the temporary increase, listen to customer feedback and answer questions.

The shipping company also is required to provide public notice when these meetings are scheduled.

Protecting Hawai‘i’s businesses is the priority of the Public Utilities Commission.

Commissioners will investigate Young Brothers to assess the shipping company’s financial health and plan to return to financial stability that will not rely on continued rate increases.

While the investigation is ongoing, the commission encourages residents and businesses to submit public comments, as well as participate in the upcoming community meetings.

Visit the commission’s online public comment page to submit a comment and be sure to reference Docket No. 2024-0255.

Commissioners also approved on Friday approved a temporary additive increase of the Island Agricultural Product Discount by 2% for less-than-container load and container shipments to support local agriculture.