Raise a Glass to Ending the Jones Act | Koloa Rum Company Fights Back

     For over a century, the Jones Act has impacted Hawaii's economy to the detriment of local businesses and consumers. Enacted in 1920, this maritime law has created a protected monopoly in domestic shipping, limiting competition and driving up costs for residents. 

The Jones Act eliminated competition in Hawaii's shipping industry by requiring that vessels be built, owned, and crewed by U.S. citizens. It creates recurring economic challenges for Hawaii, causing job and revenue losses. If the U.S. building and shipping requirements were removed, Hawaii could save a lot more money, create new jobs, and generate more income.

     As a result of this act, Young Brothers is now the only inter-island shipping company on the market. With no competition to challenge them, Young Brothers has the power to set prices unilaterally.

Young Brothers' Price Increases

     Young Brothers has filed a request for a total revenue increase of $26,368,923, amounting to staggering hikes over current rates. This proposal includes several specific rate increases across various categories, with the following notable changes:

• LCL – Less than Pallet (Dry): 35% increase

• LCL – Less than Pallet (Reefer): 45% increase

• Hilo Containers & Straight Load: 35% increase

• Hazardous Materials (LCL): 35% increase

• Minimum Bill of Lading (MBOL): Increases ranging from 41.5% to 76.6%

• Automobiles: 30% increase

• Roll-On, Roll-Off Services: 30% increase

• Temporary Rate Increase (TRI): an initial 20% increase effective April 1, 2025, followed by an additional 5% increase on July 1, 2025 (applied uniformly to all regulated cargo rates).

     The proposed increases come at a time when many Hawaii residents are already struggling with high costs of living.

www.koloarum.com

Koloa Rum Company's Legal Challenge

     The Koloa Rum Company has filed a lawsuit against the Jones Act under the Port Preference Clause of the U.S. Constitution:

“No Preference shall be given by any Regulation of Commerce or Revenue to the Ports of one State over those of another: nor shall Vessels bound to, or from, one State, be obliged to enter, clear, or pay Duties in another.”

(U.S. Const. Art. I, § 9)

     This clause explicitly states that no port should be receiving preferential treatment.  By preventing Koloa Rum Company from shipping molasses from the Philippines on foreign vessels, the Jones Act limits opportunities for local businesses. Worse still, they will have no choice but to fork over whatever Young Brothers charges. If their application passes, this could inflate the cost of shipping products by over double.      

And don’t forget to raise a glass to Koloa Rum Company!