Green Signs Law Allowing Young Brothers Rate Hikes

May 29, 2026

Summary

Hawaii approved automatic Young Brothers rate hikes, and the company said it will raise freight rates 3% on July 1.

Why this matters

Young Brothers handles much of Hawaii’s interisland bulk cargo, so higher shipping and wharfage costs could affect businesses and consumer prices across multiple islands. The law also changes how the state oversees rate increases for a key regulated carrier.

Gov. Josh Green signed a bill allowing Young Brothers to impose annual freight rate increases of up to 5% for the next three years, and the company said it will raise rates 3% starting July 1.

The increase will take effect the same day the state Department of Transportation plans a 3% increase in wharfage fees.

Young Brothers, which carries bulk cargo among Oahu, Hawaii Island, Kauai, Maui, Molokai, and Lanai, is regulated by the state Public Utilities Commission. It is the only interisland cargo carrier handling large-volume shipments such as construction materials.

Green signed Senate Bill 2694 into law May 19. The measure created an automatic rate adjustment process that Young Brothers said offers “a more timely, transparent and predictable framework for adjusting interisland shipping rates.”

Young Brothers has said the commission’s approval process is too slow and leaves the company operating at a loss while it waits for decisions on rate requests.

The company also said that in 2024 and 2025 it used more than $26 million in state wharfage fees it collected from customers to cover operating expenses instead of sending the money to the state. The Department of Transportation assessed penalties and interest, and the company now owes about $30 million, according to the article.

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