Young Brothers will continue operations under a reduced sailing schedule for the next month, but Monday barge service in Hilo is set to resume soon.
The Public Utilities Commission in a Wednesday order approved extending the interisland shipper’s current sailing schedule implemented May 5 through June 11. It then approved a 30-day extension of that schedule effective June 12, but with adjustments.
One change was moving the barge arrival day in Hilo from Thursday to Monday, a change that will help farmers and producers who’ve had difficulty getting their perishables and fresh produce to market in time for the weekend with shipments leaving Hilo on Thursday.
“We’re pleased, and our exporters are happy as well,” said state Sen. Lorraine Inouye, D-North Hawaii, who is also chairwoman of the Senate Committee on Transportation and had been pushing for the day change since the schedule was implemented May 5. “The next step is, hopefully, we can resolve their problems and have our two schedules (sailings) back — that’s what my wish is.”
In a prepared statement, president Jay Ana said Friday the company knows families, businesses, and communities depend on Young Brothers’ services that connect the island economies.
“We also understand that any changes to our regular sailing schedule – including the ones we implemented to cut costs as cargo volumes declined due to COVID-19 – have real impacts on our customers. We listened and worked with our customers and elected officials to adjust the sailing schedule to Hilo, ensuring we can best serve the needs of local farmers, and all of Hawaii Island, in these challenging times,” Ana said. “Young Brothers is exploring all avenues to help set the company on a sustainable path so we may continue our 120-year legacy of serving Hawaii for many more years to come. To the people of Hawaii, we are doing all we can to keep moving what matters most to you and our communities.”
On May 26, Young Brothers notified the state it needed $25 million in federal Coronavirus Aid, Relief, and Economic Security Act funds to stay afloat through the end of the year. Without a bailout, Ana said the company — with PUC approval — would have to maintain the now extended reduced sailing schedule and make additional cuts.
Following the recommendation of state Consumer Advocate Dean Nishina that the commission initiate a proceeding to look into the request and company’s financial condition, an “emergency investigative” docket was opened this week.
On Thursday, a status conference was set for June 10. The conference will be streamed online for public viewing, though the public will not be able to participate. Additional details will be released Monday, including an agenda and information for viewing the conference.
Inouye said she and other legislators are awaiting a decision and recommendation from the commission.
“We’re awaiting that to determine what’s next; if there’s anything that the Legislature needs to proceed on,” she said. The Legislature is now set to reconvene June 22.
Contingency plans filed last week by Young Brothers outlined how the company would operate under immediate receipt of funding, delayed receipt of funding or no receipt of funding.
Should the company immediately receive $25 million, Young Brothers anticipated it would meet expense obligations through 2020. That reflects the reduced sailing schedule implemented last month remaining in effect and the company securing permanent rate relief, regulatory flexibility, long-term financing, regulatory tracking mechanisms and the phased partial suspension of LCL/mix to certain ports, including Kawaihae and Hilo, if approved by the PUC.
A delay in the receipt of funding may require Young Brothers to immediately further reduce sailings to neighbor island ports and eliminate dry and refrigerated LCL/mix cargo options, among other services to sustain operations until funding arrives.
Without funding, the company stated the phased suspensions and service cuts would need to be immediately implemented at once.
