01-30-2022, 12:41 AM
(01-29-2022, 08:58 PM)DidUHearAboutPluto? Wrote: 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.