Neighbor Island Cargo Volumes Slip 2.1 Percent in Third Quarter

Agricultural Volume Jumps 10 Percent

HONOLULU--()--Young Brothers, Limited announced today that intrastate cargo shipments between Honolulu and six neighbor island ports decreased 2.1 percent from July through September of 2014 compared to the same period of 2013, when cargo volumes rose more than 5 percent.

“The bar was set high last year, so we knew going into July of this year that it would be a tough comparison and difficult to maintain the trend of finishing on the plus side,” said Roy Catalani, vice president of Young Brothers. “Nonetheless, a two-point dip in cargo volume indicates some softening in neighbor island economies.”

Indeed, the third quarter of 2014 marks the first decrease of Young Brothers’ cargo volume over the last six quarters. In the first quarter of this year cargo volume increased by 4 percent, followed by a relatively flat second quarter which still inched up by 0.3 percent. In 2013, when the positive trend started, volume climbed 4.4 percent in the second quarter, 5.2 percent in third and 0.6 percent in the fourth.

Cargo volume decreased at four neighbor island ports during the third quarter of 2014: Maui, down 4.2 percent; Kawaihae, 4.6 percent; Kauaʻi, 6.0 percent; and Molokaʻi, 3.9 percent. Two ports experienced a spike in cargo: Hilo, up 3.4 percent, and Lānaʻi, up 20.0 percent, which continued its string of double-digit increases.

Industry segments showing strength during the third quarter include government shipments and utilities. Higher-than-normal cargo volumes moved to the Big Island to help the Puna area recover from Tropical Storm Iselle with repairs to electric, phone, and cable infrastructure. Segments declining during the quarter include food and beverage, and recycling.

Volume Up 0.6 Percent Through Nine Months Ending September

Overall volume for the first nine months of 2014 remained in positive territory, increasing 0.6 percent compared to the same period last year.

Cargo volume declined at four neighbor island ports in the first nine months of the year while two ports experienced an increase. Maui volume dropped 0.8 percent; Kawaihae, down 0.8 percent; Kauaʻi, 3.5 percent; and Molokaʻi, 4.5 percent. Volume increased at Hilo by 4.3 percent and by 40.6 percent at Lānaʻi.

Energy-related segments, including renewable energy and petroleum, are up through the first nine months. Volumes attributable to the construction sector are mixed thus far in 2014, with no clear growth trend for the neighbor islands as a whole. However, the impact of this year’s economic activity on Lānaʻi is clear. Without this year’s volume growth on Lānaʻi, Young Brothers’ year-to-date volumes would reflect a 0.7 percent decline.

Shipping volumes for the third quarter and the nine-month period ending Sept. 30, 2014 are shown by port in Appendix 1.

Agricultural Cargo Rises by 10 Percent in Third Quarter

Agricultural cargo volume continued to increase quarter over quarter, rising 10.3 percent compared to the third quarter of 2013. This follows a 5.7-percent increase in the second quarter. For the first nine months of 2014, agricultural volume rose 7.3 percent compared to the same period of 2013.

Agricultural exports increased at four ports during the third quarter: Hilo, up 6.3 percent; Kawaihae, up 79.9 percent; Kauaʻi, 38.2 percent; and Molokaʻi, 19.2 percent. Honolulu and Maui agricultural exports declined 1.5 percent and 8.9 percent, respectively.

“The increase in ag cargo demonstrates that demand for locally grown food remains strong,” Catalani said. However, the large increase in cargo from Kawaihae was due in large part to limited period demands for landscaping projects on Lānaʻi and livestock movements on other islands, Catalani added.

During the first nine months of the year, four ports experienced an increase in volume: Hilo, up 9.5 percent; Kawaihae, 42.7 percent; Kauaʻi, 12.9 percent; and Molokaʻi, 7.5 percent. Agricultural volume fell at Maui by 10.6 percent, while volume at Honolulu finished flat, up 0.1 percent.

Agricultural 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. Agricultural cargo volumes for the third quarter and the nine-month period ending Sept. 30, 2014 are shown by port of origin in Appendix 2.

About the Young Brothers Quarterly Shipping Report

Young Brothers’ quarterly intrastate shipping volumes reflect only cargo shipments that originate and terminate within the State of Hawaiʻi. The Young Brothers Quarterly Shipping Report was initiated in 2012. The company will release its fourth quarter 2014 results in February 2015.

Young Brothers, Limited, with approximately 340 employees across the state, has served Hawaiʻi 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 Nāwiliwili. For more information, visit www.youngbrothershawaii.com.

 
Appendix 1
Young Brothers, Limited
Neighbor Island Intrastate Cargo Volume – Third Quarter 2014
 

Container/Platform Equivalents (CPEs) Between Honolulu and Neighbor Island Ports

    Q3 2014    

Q3 2013

   

Percent
Change

   

Nine months
ended Sept. 30,
2014

   

Nine months
ended Sept. 30,
2013

   

Percent
Change

All Ports 33,099 33,806 (2.1%) 99,497 98,885 0.6%
Kahului, Maui 11,744 12,255 (4.2%) 35,824 36,127 (0.8%)

Inbound

8,620 9,075 (5.0%) 26,124 26,186 (0.2%)

Outbound

3,124 3,180 (1.8%) 9,700 9,941 (2.4%)
Hilo, Hawaiʻi 8,920 8,626 3.4% 25,733 24,667 4.3%

Inbound

6,125 5,858 4.6% 17,461 16,974 2.9%

Outbound

2,795 2,768 1.0% 8,272 7,693 7.5%
Kawaihae, Hawaiʻi 5,168 5,415 (4.6%) 15,531 15,662 (0.8%)

Inbound

3,778 3,977 (5.0%) 11,254 11,244 0.1%

Outbound

1,390 1,438 (3.3%) 4,277 4,418 (3.2%)
Nāwiliwili, Kauaʻi 6,808 7,242 (6.0%) 20,971 21,736 (3.5%)

Inbound

5,218 5,464 (4.5%) 16,477 16,850 (2.2%)

Outbound

1,591 1,777 (10.5%) 4,493 4,886 (8.0%)
Kaunakakai, Molokaʻi 1,503 1,565 (3.9%) 4,557 4,770 (4.5%)

Inbound

1,161 1,130 2.8% 3,448 3,439 0.3%

Outbound

343 435 (21.3%) 1,109 1,330 (16.6%)
Kaumalapau, Lānaʻi 1,426 1,188 20.0% 4,510 3,208 40.6%

Inbound

1,205 967 24.5% 3,710 2,632 41.0%

Outbound

221 221 0.3% 799 576 38.7%
 

NOTE: The “All Ports” category reflects every unique cargo item transported by Young Brothers. In contrast, the sum of individual ports is greater than the amount of unique shipments in the “All Ports” total. This is because transshipment cargo volumes (i.e., cargo that originates on a neighbor island, is transshipped at YB’s Honolulu hub and terminates at another neighbor island port) are attributed to the neighbor island origin port as “outbound” cargo and the neighbor island destination port as “inbound” cargo. Transshipped cargo makes up a relatively small percentage of total cargo volume.

 
Appendix 2
Young Brothers, Limited
Agricultural Cargo Volume by Island and Port – Third Quarter 2014
 
Outbound Agricultural Cargo (CPEs)
    Q3 2014     Q3 2013    

Percent

Change

   

Nine months
ended Sept. 30,
2014

   

Nine months
ended Sept. 30,
2013

   

Percent

Change

All Islands 2,071 1,877 10.3% 5,999 5,591 7.3%
Oʻahu (Honolulu) 381 387 (1.5%) 1,163 1,162 0.1%
Maui (Kahului) 292 320 (8.9%) 866 968 (10.6%)
Hawaiʻi Island 1,218 1,024 18.9% 3,447 2,981 15.6%
Hilo 902 848 6.3% 2,656 2,426 9.5%
Kawaihae 316 176 79.9% 791 555 42.7%
Kauaʻi (Nāwiliwili) 50 36 38.2% 150 133 12.9%
Molokaʻi (Kaunakakai) 130 109 19.2% 373 347 7.5%
Lānaʻi (Kaumalapau) 0 0 N/A 0 0 N/A
 

NOTE: Agricultural cargo volumes represent all regulated Young Brothers cargo which qualified for the 30% to 35% “Island Product” discount. In contrast to total cargo volumes in Appendix 1, agricultural cargo volumes are categorized only by the port from which they originated, meaning the island on which the agricultural product was grown.

Note regarding CPE unit of measurement: Young Brothers measures its cargo in units called “container/platform equivalents” (CPE), which allow a comparison of cargo volumes across different sizes of containers and other non-standardized cargo types. Due to rounding, CPE numbers presented throughout this document may not precisely reflect the absolute figures.

Contacts

Young Brothers
Roy Catalani, 808-543-9409
or
Cockett Communications Inc.
Kevin Cockett, 808-223-6734

Contacts

Young Brothers
Roy Catalani, 808-543-9409
or
Cockett Communications Inc.
Kevin Cockett, 808-223-6734