Economy barging forward? Kawaihae cargo volume, seen as indicator of economic activity, up 2.4 percent

Interisland shipping company Young Brothers moved 2.4 percent more cargo in and out of Kawaihae Harbor during the first quarter of this year than the same time last year.

The increase was on pace with an islandwide increase of 2.6 percent in cargo moved January to March of this year, compared with the same months in 2011, company officials said in a report released Wednesday.

“One quarter is a pretty small data set,” Vice President for Strategic Planning and Government Affairs Roy Catalani said. “There’s some hopeful signs in that set.”

The 2.4 percent increase meant roughly 124 more container/platform equivalents moved through Kawaihae Harbor, the report said.

“Cargo volume coming into any locale will tell you something about how the economy is doing,” Catalani said. “It says more about demand.”

Since the recession began, Young Brothers noted some historical trends, with higher cargo volumes in some quarters and lower volumes in others, stopped holding true, he added.

While the first quarter of this year did show increases when compared with last year, the month-by-month comparison showed January was very strong compared with last January, this February was about the same as last February and this March saw slightly less volume than last March.

Kawaihae Harbor led the neighbor islands in outbound cargo increases, with a 4 percent volume increase. Catalani said existing agricultural producers likely accounted for the growth in outbound cargo. The port recorded a 1.9 percent increase in inbound cargo.

Statewide, Young Brothers saw a 16.2 percent increase in the amount of local agricultural products shipped interisland.The company offers a 30 percent to 35 percent discount for shipping locally grown agricultural products.

Young Brothers President Glenn Hong said he hoped the increase indicated a growing interest in locally grown food.

Inbound cargo provided the greater boost at Hilo Harbor, which saw 312 more container/platform equivalents during 2012’s first quarter than in the same time period in 2011. Overall, Hilo recorded a 4.3 percent increase.

Maui’s Kahului Harbor recorded the greatest cargo increase, at 6.3 percent. Three smaller harbors, Nawiliwili on Kauai, Kaunakakai on Molokai and Kaumalapau on Lanai, recorded decreases.

Company officials said the increases were a cause for cautious optimism.

“First, it’s still early in the year,” Hong said. “Second, volume in the comparable quarter of 2011 was at the lowest level of the recent recession. Last, volume in the first quarter of 2012 remains well below the peak volumes seen in 2007,” he said.

So far this year, Young Brothers reported its quarterly statewide volume was about 20 percent lower than the same period in 2007.

“We have some optimism and, of course, we’d like to see the most recent trend of modest growth remain steady,” Hong said. “However, we believe it will be quite some time before we again see the levels of economic activity of about five years ago.”