Young Bros. seeks review of shipping decision - Hawaii News Now - KGMB and KHNL

Young Bros. seeks review of shipping decision

By Howard Dicus

HONOLULU (HawaiiNewsNow) - Young Brothers Ltd. is asking state regulators to rethink their decision to allow new competition for some parts of the interisland shipping business.

Pasha Hawaii Transport, which sails a single large vehicle carrier ship between Honolulu and the West Coast, won Public Utilities Commission approval to haul vehicles interisland.

Young Brothers, which carries half the cargo that goes to neighbor islands, objected to what it called "cherrypicking" the most profitable elements of interisland shipping by Pasha.

The PUC approval of Pasha service to Nawiliwili, Kahului and Hilo was billed as temporary, but lasts for three years unless the PUC sees evidence of harm from the decision.

"We feel like it's not a level playing field," said Glenn Hong, CEO of Young Brothers. "We serve other Hawaii ports, we have more sailings to the ports involved in this decsion, and we carry smaller kinds of cargo. They don't have to do that."

Hong said Tuesday that Young Brothers filed for reconsideration - the papers were filed Monday - but he did not know if the PUC would respond.

Pasha, owned by a freight forwarding business based in San Francisco, encountered similar objections when it launched vehicle service from the West Coast to Honolulu several years ago.

Matson Navigation Co. and Horizon Lines Inc. both protested that Pasha was cherrypicking lucrative vehicle service while leaving less profitable cargo business to them.

Young Brothers is a subsidiary of Seattle-based Saltchuk Resources, which also owns Aloha Air Cargo. The two Hawaii companies are operated separately, however.

Copyright 2010 by HawaiiNewsNow. All rights reserved.

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