HONOLULU--(BUSINESS WIRE)--Young Brothers, Limited saw a continued slight decrease in its intrastate cargo shipments, according to the Young Brothers Quarterly Shipping Report for the third quarter of 2012. For the 3-month period from July 1 to Sept. 30, 2012, intrastate volume dropped 1.1 percent compared to the same quarter of 2011.
“Still, we’re hoping to see our quarterly comparisons get back into positive territory as we round out the last quarter of 2012.”
“We saw a slight down-tick in the third quarter but, overall, cargo volumes were relatively stable,” said Glenn Hong, president of Young Brothers. “Still, we’re hoping to see our quarterly comparisons get back into positive territory as we round out the last quarter of 2012.”
Young Brothers’ Quarterly Report – a key barometer of neighbor island economic activity – reported a 2.7-percent decrease in intrastate cargo volume for the second quarter of 2012 compared to the same period in 2011.
Year over year, cargo volume declines in the third quarter of 2012 ranged from 1.2 percent (Hilo) to 2.5 percent (Kauai) to 6.8 percent (Molokai) to 8.2 percent (Kawaihae). Conversely, two ports finished the quarter with positive cargo volume comparisons – Maui, up 2.0 percent, and Lanai, up 34.3 percent.
As the largest neighbor island port, Maui’s 2.0-percent growth has a significant impact on total cargo volumes. Although the Port of Kawaihae had the largest percentage point decline in cargo volume, this figure was driven by a 36-percent decrease in outbound cargo, primarily water exports, but cargo in-bound to Kawaihae actually increased by 5 percent. The Port of Lanai, which has the smallest cargo volume in Young Brothers’ statewide system, continues to exhibit cargo volume growth in large part because of the island’s fuel supply, which was previously carried by a specialized fuel barge. The fuel cargo has been transported in containers by Young Brothers since early this year. In addition, Lanai has seen an increase in shipments of materials for building improvements and renovations.
First Nine Months Volume Flat Compared to 2011
Young Brothers said overall volume for the first nine months was flat compared to the same period last year, decreasing by 0.2 percent.
During the first nine months of 2012, three ports saw cargo volume climb: Hilo, up 0.2 percent; Maui, up 2.8 percent; and Lanai, 21.4 percent. They were offset by single-digit decreases at the other three ports: Kauai, down 2.1 percent; West Hawaii, down 4.6 percent; and Molokai, down 9.1 percent.
Shipping volumes for the third quarter and year-to-date are shown by port in Appendix 1.
Agricultural Volume up 10 Percent
Young Brothers also reported that local agricultural cargo volume saw another increase, both quarterly and year-to-date. Year over year, third-quarter volume was up 9.8 percent, while volume for the first nine months increased 10.9 percent. This volume includes only cargo that qualifies for the company’s island product discount of 30 to 35 percent, which applies to locally grown agricultural products.
“We believe the agricultural cargo increase reflects the growing interest by local consumers in food sustainability. People and businesses appear to be buying more locally grown products,” Hong said.
Young Brothers’ quarterly intrastate shipping volumes reflect only cargo shipments that originate and terminate within Hawaii. The Young Brothers Quarterly Shipping Report was initiated in May 2012, reporting on the first quarter of 2012. The company will release its fourth quarter 2012 results in February 2013.
About Young Brothers
Young Brothers, Limited, with 340 employees across the state, has served Hawaii since 1900. Young Brothers is a publicly regulated water carrier providing 12 weekly port calls from Honolulu to the state’s neighbor island ports, including Hilo, Kawaihae, Kahului, Kaumalapau, Kaunakakai and Nawiliwili. For more information, visit www.youngbrothershawaii.com.
Young Brothers, Limited
Intrastate Cargo Volume – Third Quarter 2012
|Container/Platform Equivalents (CPEs) Between Honolulu and Neighbor Island Ports|
|3rd Quarter 2012||3rd Quarter 2011||Percent Change||
Note regarding CPE unit of measurement: In the water carrier industry generally cargo volumes are measured and compared across different sizes of containers (e.g., 20-foot, 24-foot, 40-foot and 45-foot containers). To standardize the unit of measurement, the industry uses “TEU,” or twenty-foot equivalent unit, which refers to a container size standard of twenty feet, to ensure that measurements and comparisons are equivalent.
As a universal service provider, Young Brothers transports freight of all kinds, including refrigerated and dry containers, platforms, flatracks, palletized cargo, loose cargo, automobiles and roll-on/roll-off cargo. As a result, it is necessary to measure cargo flows across different sizes and types of shipping devices that are not readily measured in container terms. Therefore, Young Brothers developed “container/platform equivalent” (CPE) as its common denominator and measurement for its diverse cargo flows. For example, one CPE of palletized or loose cargo roughly represents the average number of palletized or loose cargo that fits into a 20-foot container, platform or flatrack.