Pasha Hawaii Charters Backed by Costco

[DidUHearAboutPluto?]

While shopping at Costco earlier today, I and a Costco assistant store manager had an insightful conversation about supply chain disruptions and retail businesses reliance upon the usual cargo carrier suspects.

Seems Costco has taken taken shipping matters into their own hands by partnering with, and financially backing,  Pasha Hawaii allowing PH to obtain additional cargo carriers.

The manager said that improving deliveries to Hawaii, apparently an excellent market for them, was front and center as well as movement of cargo from and to Asia.   He also implied that eventually giving the more entrenched cargo players domiciled in Hawaii a run for their money is in the cards, right down to improving retail shipping of vehicles.

https://splash247.com/pasha-hawaii-teams...ing-spree/

[Durian Fiend]

Thanks for sharing this!

[eightfingers2.0]

New east side Costco perhaps?

[AaronM]

We used PH to bring vehicles over in '05 and they were great to work with back then.

Here's hoping that Costco can create a shipping price war.

[DidUHearAboutPluto?]

That sums up my feelings about Hawaii shipping monopolies!

[tgalarneau]

That sums up my feelings about Hawaii shipping monopolies!

This charter vessel won't do anything much for Hawaii. This vessel is not american bottom/american crewed so it can't be used for US to Hawaii trade because of US cabotage laws. It will likely be used in the China to West Coast trade.

At $42,000 per day charter for three years it could end up more expensive than commercial carriers after this bottleneck is cleared, up but at least they will get product in the meantime The ocean carrier business is fickle and rates have a tendency to fall, due to international competition and varying trade volumes, due to very high fixed costs.

They could use this for Asia direct to Hawaii, but I doubt this is what they have in mind at this fairly high charter cost and volume constraints. Not even Matson does this with their Asia trade. But then again they probably make more by first shipping to the west coast and reloading it for Hawaii at the higher rates - double dipping at our expense.

Hawaii ocean shipping costs will not be competitive until congress repeals the cabotage laws.

[AaronM]

Yes, we need Congress to finally save us. In the meantime if you have a choice, avoid Matson.