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WHEREAS, Young Brothers LLC, a subsidiary of Foss Maritime Company, LLC, a <br /> subsidiary of Saltchuk Marine Services, LLC, a subsidiary of Saltchuk Resources, Inc., is an <br /> interisland shipper licensed and regulated by the Public Utilities Commission (PUC) under <br /> Hawai`i Revised Statutes Chapter 271G, the Hawai`i Water Carrier Law; and <br /> WHEREAS, the PUC on May 4, 2020, has issued Order No. 37128, approving Young <br /> Brothers' request as stated in their Transmittal No. 20-0003, to cut expenses by reducing its <br /> weekly sailings to the Kahului Harbor from three to two, by reducing its weekly sailings to <br /> Kaunakakai Harbor from two to one, and by reducing its weekly sailings to Hilo Harbor from <br /> two to one on a temporary basis; and <br /> WHEREAS, the reduction in sailings to these ports reduces carrying capacity, constrains <br /> intrastate commerce, and increases the potential for service interruptions due to incidents arising <br /> from improper container loads; and <br /> WHEREAS, Young Brothers has on May 26, 2020, requested a grant of$25 million <br /> from the State's allocation of Coronavirus Aid, Relief, and Economic Security Act (CARES) <br /> funding, has stated that its parent company will not cover revenue shortfalls after May 31, 2020, <br /> and also that "absent immediate relief from the State, it will soon be unable to pay its expenses <br /> or continue operations"; and <br /> WHEREAS, a cessation of service is contrary to the stated intent of the Hawai`i Water <br /> Carrier Law to "promote safe, adequate, economical, and efficient service among carriers, to <br /> encourage the establishment and maintenance of reasonable rates and charges for transportation <br /> and related accessorial service, without unjust discrimination, undue preference or advantage, or <br /> unfair or destructive competitive practices, all to the end of developing, coordinating, and <br /> preserving a sound transportation system by water"; and <br /> WHEREAS, federal subsidies may be available through the U.S. Department of <br /> Transportation's Maritime Administration, the U.S. Department of Agriculture, and elsewhere to <br /> offset reasonable expenses incurred by Young Brothers so that the company may continue its <br /> operations; now, therefore, <br /> BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that <br /> Young Brothers and the Public Utilities Commission are urged to explore all opportunities to <br /> continue uninterrupted cargo service to the islands of the State of Hawai`i, while maintaining <br /> "just and reasonable" rates as required by the Hawai`i Water Carrier Law. <br /> BE IT FURTHER RESOLVED that the cessation of interisland cargo service is an <br /> unacceptable outcome. <br /> 2 <br />