HOUSE OF REPRESENTATIVES

H.B. NO.

2613

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to ocean Shipping.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that Hawaii has the highest number of homeless individuals per capita in the nation and is ranked as the top state where residents are most likely to live paycheck to paycheck.  The continued and escalating high cost of living in Hawaii is a driving factor in the State's homeless problem.

     The legislature also finds that over ninety per cent of consumer goods, clothing, vehicles, and household items used in Hawaii arrives via ocean carriers.  Due to the high percentage of products that are shipped to Hawaii on ocean carriers and the costs associated with such shipments, a wide variety of Hawaii businesses must raise the cost of goods or services to break even.  Accordingly, ocean carrier shipping costs affect, and often raise, the cost of food, fuel, and virtually everything residents and visitors use and consume in the State.

     Matson, Inc. is a provider of ocean transportation and logistics services.  Its ocean transportation business is conducted through its wholly owned subsidiary, Matson Navigation Company, Inc., that provides ocean freight transportation services to the economies of Hawaii, Guam, and Micronesia, and also operates an expedited service from China to Long Beach, California.

     The Honolulu Star-Advertiser reported on November 5, 2015, that Matson’s 2015 third-quarter profit increased ninety-three per cent to $41,500,000.  Matson reported carrying 41,200 Hawaii containers in that quarter, up 14.8 per cent from 35,900 one year earlier.  Automobile shipping volume increased 33.8 per cent to 17,800 vehicles from 13,300 in the same period one year earlier.

     On November 25, 2015, the Honolulu Star-Advertiser reported that Matson, regardless of its ninety-three per cent surge in profits, would be raising its rates by five per cent for goods shipped to Hawaii.  The increase is about twice as much as the expected inflation rate for the State.  The Honolulu Star-Advertiser also reported that since 2003, Matson has raised shipping prices to Hawaii by $3,435.00 per container.

     The legislature further finds that Hawaii has recently moved from three ocean carriers servicing the State to two.  With the decreased competition and increased shipping prices, the legislature finds that ocean freight costs may continue to increase.

     The purpose of this Act is to require the department of business, economic development, and tourism to conduct a study regarding the ocean shipping industry and its impact on the cost of living in Hawaii.

     SECTION 2.  (a)  The department of business, economic development, and tourism shall conduct a study of the ocean shipping industry and its impact on the cost of living in Hawaii.

     (b)  The study shall examine:

     (1)  Current ocean carriers serving Hawaii and other parts of the world;

     (2)  State, federal, and international ocean carrier regulations;

     (3)  Ocean carrier pricing structures;

     (4)  Inter- and intra-island shipping;

     (5)  Any additional considerations that the department believes necessary; and

     (6)  How the matters examined in paragraphs (1) to (5) impact the cost of living in Hawaii.

     (c)  The department of business, economic development, and tourism shall report its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2017.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000 or so much thereof as may be necessary for fiscal year 2016-2017 to conduct a study of the ocean shipping industry and its impact on the cost of living in Hawaii.

     The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2016.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Ocean Shipping Industry; Cost of Living; DBEDT; Study; Appropriation

 

Description:

Requires DBEDT to conduct a study of the ocean shipping industry and its impact on the cost of living in Hawaii.  Appropriates funds.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.