Some Maui County residents and elected officials are expressing concerns about a requested temporary rate increase of 25% by Interisland shipper Young Brothers, especially in light of efforts to rebuild Lahaina devastated by the 2023 wildfire.

Public hearings have been held by the state Public Utilities Commission throughout the county regarding the regulated company’s proposal.

“People are trying to make ends meet to rebuild,” Maui County Council Member Tamara Paltin said. “The Public Utilities Commission should do their job and see what’s really needed.”

Council member Keani Rawlins-Fernandez has introduced a resolution opposing the rate increase. She said she feels opposing the increase is taking a stand for economic justice, especially on Molokai and Lanai, where shipping policies turn geographic isolation into economic punishment.

“This isn’t just about shipping costs,” she said in an interview. “It’s about whether Hawaii will remain livable for working families.”

According to Kris Nakagawa, vice president of external and legal affairs for Young Brothers, without the rate relief, Young Brothers is currently in default under a loan agreement and will be unable to maintain its loan, cover its operating costs or make necessary capital investments to ensure safe and reliable service.

“It is facing financial distress,” Nakagawa said. “We’re losing money on our current rates and cannot continue to offer you the frequent reliable services you rely on without adequate rate relief.”

Nakagawa said that while the current rates carried Young Brothers through the pandemic, operating costs have continued to rise in the past four years.

As an example of its impact upon the consumer, Nakagawa said, the cost to ship a personal, medium-sized automobile from Honolulu to Maui one way would rise from approximately $334 to about $434 under the proposed increase.

Steven Tatik, the president of Lifestyle Maui Furniture, said the increase will inhibit business.

“They should be able to maintain the costs,” he said.

Other groups and organizations could be affected too.

David Washburn, Hawaii Food Bank’s director of institutional giving, said the nonprofit has “highly valued relationships” with shippers like Young Brothers and with food vendors to help yield about five times the purchasing power for each donated dollar.

“We’ve always found Young Brothers to be an extremely good community partner,” Washburn said.

Meli James, co-founder of Mana Up, a group that helps start-up businesses, said she supports the rate increase.

“We absolutely support Young Brothers and believe that this is important for them to be in a financially stable position,” James said.

Correction: This report has been updated with the correct spelling of Kris Nakagawa’s name.