Young Brothers containers are shown stacked in Kahului Harbor in January. Mayor Michael Victorino said he is confident a solution will be found to help the shipping company. The Maui News / MATTHEW THAYER photo

Maui County’s mayor expressed optimism Wednesday that a solution will be found to help buoy the shipping company that provides a lifeline for Neighbor Island communities, especially smaller ones on Lanai and Molokai.

“I’m very confident the state and the Legislature and the administration will work together to make something happen to help Young Brothers survive in these unprecedented times,” Mayor Michael Victorino said.

Victorino said Wednesday that Lanai and Molokai would be the most adversely affected if the shipping company ceases operations.

“But it would include Maui, too,” he said. “Most of our products come through Young Brothers.”

Citing an “extremely dire” financial situation, interisland shipper Young Brothers LLC said Tuesday it is seeking $25 million of the state’s portion of federal COVID-19 relief funds and approval from the Public Utilities Commission to a reduced schedule.

The CARES Act money would help the company’s “cash crisis” triggered by a 30 percent drop in cargo volumes due to the pandemic. Already, the company has lost $8 million; it projects losses will total about $25 million by the end of the year, a release said.

Young Brothers’ parent company Saltchuk will stop supporting the company’s losses starting Monday, the news release said. Saltchuk has covered more than $21 million in losses from 2018-19 as Young Brothers sought shipping rate increases from the PUC.

The first phase of contingency plans that, if approved, would take effect June 8 include eliminating dry and refrigerated less-than-container-load mixed cargo between Honolulu and Kahului; Kawaihae, Hawaii island; Nawiliwili, Kauai; and Hilo. The company would continue to accept less-than-container-load livestock shipments from all islands and dry and refrigerated cargo to Lanai and Molokai only.

The second phase includes further reductions in sailing frequency to all Neighbor Islands, modified tug and barge availability and elimination of all less-than-container-load options from all ports, including shipments of livestock.

Young Brothers said Wednesday afternoon that it is awaiting response from the PUC.

Also, a timeframe has not yet been set for the company’s second phase of contingency plans, it added.

* Kehaulani Cerizo can be reached at kcerizo@mauinews.com.