Hawai‘i’s 2026 Guide to Shipping, Air and Transportation

Pasha Hawaii

“Very early on, we felt we had successfully adapted to the tariff uncertainties of 2025 as it relates to the timing of freight flow. Several shippers and retailers, using mainland-based sourcing, were making changes to their international sourcing decisions, with the cycles altered but with freight flow volumes remaining similar to the prior year,” says Pasha Hawaii’s president and CEO, George Pasha IV. “But then, March came in like a lion.”

Specifically, the war in Iran, with its drastic reduction in energy supply, is affecting all measures of demand, resulting in an increase in energy prices for all manner of transportation here and abroad, Pasha says.

“We anticipate the exponential rise in costs will ripple out through the economy over the coming months. In addition, the state of Hawai‘i is just beginning to assess what kinds of recovery and rebuilding will be required from the recent Kona low storms.”

Still, Pasha Hawaii is assisting with storm recovery and replenishing supplies for grocery and other retail customers, and its specialty roll-on/roll-off ships are already facilitating the movement of necessary building supplies and equipment.

Like many markets, “Pasha Hawaii is expecting a relatively modest growth rate for the ocean transportation market between the mainland and Hawai‘i, conservatively, about 1%,” Pasha says.

Young Brothers

As a regular part of shipping operations across Hawai‘i, Young Brothers takes inclement weather and challenging ocean conditions in stride. However, disruptions to supply chains and subsequent drops in cargo volume due to tariffs and rising fuel prices, can affect operations and costs.

“Young Brothers’ new leadership is driving efforts to strengthen operations and make operations more resilient to external conditions and the economic headwinds that are contributing to higher fuel costs and less cargo volume moving between the islands,” says Kris Nakagawa, vice president of external and legal affairs for Young Brothers LLC. “Young Brothers’ investments in specialized equipment and highly skilled workforce at sea and at shore enable us to continue fulfilling our critical role, including supporting communities before, during and after severe weather events. We are committed to continuing to support our island communities as they recover from the recent floods.”

Demand for services and cargo volume is trending downward compared to last year and the first quarter of this year, and Nakagawa says the shipper’s focus now is on “improving efficiency of port operations, managing costs, and stabilizing the company to support a better financial outlook and a more sustainable future.”

Young Brothers plays a central role in Hawai‘i’s supply chain, connecting and facilitating trade between island communities; today it serves all major island ports and is the only ocean transportation company serving Kaunakakai on Moloka‘i and Kaumalapau on Lāna‘i.

Young Brothers also remains committed to supporting local agriculture through its Island Agricultural Product discount program, which has helped farmers save more than $30 million since 2008, Nakagawa says.

Due to its agreement with the state, Young Brothers is required to maintain a regular schedule to all islands, regardless of its volume.

Unlike other transportation companies in the state, Young Brothers does not generate a profit from its fuel surcharge. Instead, it monitors fuel costs and adjusts the surcharge; the cost changes every three months based on Young Brothers’ local tariff rules. “Fuel costs are a 100% pass through to the customer. When prices go down, customers realize those savings,” Nakagawa says.

Sustainability

Young Brothers continues to improve efficiency and reduce emissions across operations. Its fleet includes Kāpena-class tugs equipped with advanced technology that lowers maintenance requirements and improves fuel efficiency by approximately 40%. Young Brothers has also begun to modernize its shoreside fleet by utilizing electric vehicles.

The company has also invested more than $140 million in new barges and tugs, shoreside cargo-handling equipment including 40-ton forklifts and new state-of-the-art technology. An upgraded mooring system on Lāna‘i has improved reliable service to its port, which is subject to large swells. The company is also looking to invest in additional chassis, refrigerated containers, and cold chain technology, to meet the needs of customers who ship temperature-sensitive goods.

“Collectively, these investments will strengthen service reliability and efficiency, allowing us to continue delivering the critical service our island communities depend on to thrive,” says Nakagawa. “As a result, Young Brothers now operates the most modern, cost effective and reliable fleet that serves the islands.”