PUC approves Young Brothers rate increase to preserve intraisland shipping services

The Hawai‘i Public Utilities Commission has unanimously approved a 25.75% rate increase for Young Brothers LLC, effective Jan. 1, 2026. In its approval, the PUC cited YB’s escalating financial instability and the overriding public interest in avoiding an abrupt loss of the regulated intraisland shipping services YB provides.

The approved increase is expected to generate an additional $26.1 million in annual revenue, bringing YB’s total annual intrastate revenue to $127.4 million to address its financial issues. 

While it approved the rate increase, the commission denied YB’s request for a Water Carrier Inflationary Cost Index, a mechanism that would have permitted the company to automatically adjust its rates outside of a rate case before the PUC. 

The commission is also imposing strict oversight conditions, including a prohibition on rate increases for at least two years, as YB implements its business plan intended to regain financial stability, improve operational efficiencies and break the cycle of seeking urgent and substantial rate increase requests.

This rate increase replaces, rather than adds to, the temporary 18.1% rate increase granted earlier this year, which will sunset Dec. 31, 2025.