Attorney General Clare Connors spoke in a hearing Wednesday before the State Senate Committee on COVID-19, and said Governor David Ige is proposing legislation to help the state fully understand the finances of Young Brothers, the company that has barge shipments between the islands–including to Hilo and Kawaihae on the Big Island.

The legislation would allow the Public Utilities Commission, which regulates interisland shipping, to appoint a receiver to look into Young Brothers’ finances.   Young Brothers in late May asked the State Legislature to give it $25 million out of Federal CARES funds, saying if it did not get a bailout  it may have to cut services. It’s also asking for a 34% rate increase.  The company has already reduced the barge sailings between Honolulu and Hilo from two to one, although Kawaihae still gets a barge twice a week.

Young Brothers’ parent company, the Washington state-based Saltchuk Resources, said it would cease providing additional funding to Young Brothers at the end of May.

The company posted a letter online in late May explaining its revenues have been declining because of reduced cargo shipping with revenues down 30% during the COVID-19 pandemic.   Part of its initial proposed remedy was to change its sailing schedules and stop handling loads of less than a container-full.

Last week the PUC held a hearing and grilled Young Brothers President Jay Ana for more than two hours about company finances, current cost-cutting measures, and future plans.   Young Brothers had initially intended to not only cut the barges to Hilo from two a week to one, but have the one Hilo barge leave on Thursdays.   Ana noted in the hearing that at the request of Hilo businesses, they were leaving the Hilo departure on Monday.  Farmers, especially, had complained that the Thursday barge, which didn’t arrive in Honolulu until Saturday, meant their products could not arrive in time for farmers markets.

However, Hilo businesses are still asking to have the second barge restored.

In the State Senate hearing, Connors said the new legislation would also delete a number of current requirements which have allowed Young Brothers to have a virtual monopoly on interisland shipping.  Although there are other shippers that do business in the state, Young Brothers is the only shipper serving Moloka’i and Lana’i.

The new legislation is set to be reviewed by the State Legislature when it reconvenes on Monday, June 22.  In a press briefing on Thursday, House Speaker Scott Saiki said dealing with matters related to COVID-19 is one of the Legislature’s priorities for the session.

Young Brothers’ Hilo schedule is here.

Young Brothers’ Kawaihae schedule is here.