Business

Saltchuk May Soon Dominate Shipping Market

By Tammy Mori

Union employees aren't the only ones worried about what the future holds for aloha cargo.

Customers are also concerned about the bottom line.

Aloha's cargo operation handles about 85-percent of the state's air freight.

Since Saltchuk, the same company that owns Young Brothers, is planning to take over...they will soon dominate the state's shipping market.

It looks like business as usual at the Kapiolani Farmers market, but behind the scenes it's a different story.

"It's been a real rollercoaster for us," says Cheryl Vasconcellos, from Hana Fresh.

She was left scrambling between the Superferry and Aloha Air Cargo, when trying to get her produce to Oahu.

And she worries if she switches back to air cargo, prices may continue to fluctuate

"We're very concerned they are going to increase. And they were so high anyway," says Vasconcellos.

Saltchuk, the new likely owners, will dominate the shipping market giving them more control over pricing.

And prices are something that growers and distributors have already seen increasing across the board

"In less than a year you'd have 2 to 3 jumps as far as pricing. Costs for just fuel service charge is running 20 to 35 cents a pound," says Juanita Kawamoto, Fresh From The Farm.

High enough to give some neighbor island growers reason to reconsider shipping all together.

"The costs is just through the roof and you can only charge so much for a bag of lettuce," adds Vasconcellos.

Growers say our market is now one that makes it cheaper to buy lettuce and other products from the mainland and places like Thailand.

"If the government can step in by subsidy or various tax credits to the shippers, some place you can create balance then we'll be in a much better place," states Kawamoto.

Saltchuk did not return our calls today to talk about pricing and what may be in store.

But they have been doing business in hawaii for ten years and have said in past interviews that they would like to further their commitment to our state.

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