Young Brothers shipping company proposes a rate increase to shore up finances
By Savannah Harriman-Pote
September 26, 2025 at 12:31 PM HST
The state Public Utilities Commission has been holding a weeklong meeting since Monday on Young Brothers’ request to raise its rates.
The local shipping company has asked the commission to approve a 25.75% rate increase. It claims it has not been profitable since October 2023.
The commission approved a temporary rate increase of 18% in July after assessing that the price hike would generate the minimum amount of revenue needed for Young Brothers to keep providing interisland shipping services. That rate hike will be in place until the end of December.
In the meantime, the commission is reviewing whether the larger rate hike is appropriate.
The state Division of Consumer Advocacy has raised concerns over the proposed increase. Attorney Edward Knox is representing the division in this week's hearings.
In his opening statement on Monday, Knox said the company's business strategy has not been geared toward "long-term financial stability."
"The company has not been controlling its expenses for the past several years, squeezing profits out of the company in up years, thus leaving itself cash-strapped and then going into financial crises in down years," he said.
"For every crisis, Young Brothers' one answer seems to be repeatedly to seek higher and higher rates."
Young Brothers last approached the commission to raise its rates in 2020, when the commission approved a 46% increase. At the time, the company said it needed more revenue to contend with the heightened costs of pandemic operations.
On Monday, counsel for Young Brothers claimed that the Division of Consumer Advocacy is underestimating the company's operating expenses.
"[Young Brothers] will continue to do everything it can to right the ship and to keep the islands connected," attorney David Nakashima said. "But it cannot do it alone."
The commission will not be taking testimony during this week's testimony, but you can submit written comments online or by email. Each day's hearing will be livestreamed on the commission’s YouTube channel starting at 9 a.m.
The local shipping company has asked the commission to approve a 25.75% rate increase. It claims it has not been profitable since October 2023.
The commission approved a temporary rate increase of 18% in July after assessing that the price hike would generate the minimum amount of revenue needed for Young Brothers to keep providing interisland shipping services. That rate hike will be in place until the end of December.
In the meantime, the commission is reviewing whether the larger rate hike is appropriate.
The state Division of Consumer Advocacy has raised concerns over the proposed increase. Attorney Edward Knox is representing the division in this week's hearings.
In his opening statement on Monday, Knox said the company's business strategy has not been geared toward "long-term financial stability."
"The company has not been controlling its expenses for the past several years, squeezing profits out of the company in up years, thus leaving itself cash-strapped and then going into financial crises in down years," he said.
"For every crisis, Young Brothers' one answer seems to be repeatedly to seek higher and higher rates."
Young Brothers last approached the commission to raise its rates in 2020, when the commission approved a 46% increase. At the time, the company said it needed more revenue to contend with the heightened costs of pandemic operations.
On Monday, counsel for Young Brothers claimed that the Division of Consumer Advocacy is underestimating the company's operating expenses.
"[Young Brothers] will continue to do everything it can to right the ship and to keep the islands connected," attorney David Nakashima said. "But it cannot do it alone."
The commission will not be taking testimony during this week's testimony, but you can submit written comments online or by email. Each day's hearing will be livestreamed on the commission’s YouTube channel starting at 9 a.m.