The 2025 Guide To Hawai‘i’s Shipping, Air And Transportation

Photo Credit: Matson

Shipping companies are start of operations at the new Kapalama Container Terminal beginning in the fall, slow revenue growth, probable rate hikes, and more sustainable shipping practices.

Although the numbers fluctuate somewhat month over month, imports and exports in Hawai‘i decreased significantly from August 2023 – August 2024, with exports down 11% and imports down 50.6%.

In August 2024, Hawai‘i was the 53rd largest exporter in the U.S., including Washington D.C., Puerto Rico, and the Virgin Islands, and 49th in total imports in the U.S., according to The Observatory of Economic Complexity and Knoema’s World Atlas. The state exported $27.1 million worth of goods and imported $173 million worth, resulting in a negative trade balance of $145 million.

Hawai‘i’s top imports continue to be refined petroleum ($46 million), and cars ($20 million). Top exports are scrap iron ($11.7 million), and scrap aluminum ($1.2 million).

Slow Growth

Matson’s container volume to Hawai‘i in the third quarter of 2024 declined by 2.2% over the same period the previous year, which was consistent with the general softness in the market overall, says Len Isotoff, Matson’s senior vice president, Pacific.

“Hawai‘i’s economy has been affected by continued sluggish visitor arrivals due to Maui tourism being down since last year’s wildfires, and the slow recovery in Japanese visitor arrivals because of weak yen-to-dollar exchange rates,” he says.

At Pasha Hawaii, “On the containers/general consumer goods side, we are projecting a flat to 1% growth rate as Hawai‘i residents and tourists alike look to be a bit conservative on their spending in 2025,” says George Pasha IV, President and CEO of Pasha Hawaii.

As for shipping rates, “As maritime workers and vendors are securing increases from carriers like Pasha Hawaii, we are laser-focused on improving efficiency to mitigate cost to deliver cargo for the Hawai‘i consumers,” Pasha says.

Sustainable Shipping

Once open for business in the fall, the new Kapalama Container Terminal will operate with efficient and regenerative energy, aligning with the state’s goal to transition to a clean energy portfolio by the year 2045.

At Pasha, 2025 will mark the first full year in which all three of its container ships are powered by natural gas.

“Our Hawai‘i operations continue to benefit from the new ‘Ohana Class natural gas-powered containerships, MV George III and MV Janet Marie introduced in 2022-2023, and the newly repowered MV George II welcomed in 2024, the first steam-to-liquefied natural gas (LNG) conversion in the world,” Pasha says.

The result is a 99.9% reduction in particulate matter (microscopic pollutants) and sulfur oxide, a 90% reduction in nitric oxide and nitrogen dioxide, and a 60% reduction in carbon dioxide compared to the previous fleet, says Pasha.

Matson also now has three vessels running on LNG.

“It was an important milestone in our company’s strategy to help combat climate change by decarbonizing our vessel operations,” says Isotoff.

Matson has also begun construction on the first of three new ships that will join its Hawai‘i fleet in 2026 and 2027; all will run on LNG.

“Matson is working toward aggressive environmental goals of reducing our Scope 1 fleet emissions by 40% by 2030, and achieving net-zero emissions by 2050,” Isotoff says.

Matson is also in the midst of a more than $60 million terminal expansion and modernization project at its Sand Island terminal that will reduce environmental impact and deliver new levels of speed and resiliency against natural disasters. The company has converted to all-electric gantry cranes and overhauled the terminal’s electrical infrastructure, Isotoff says. To avoid power interruption, Matson has three stand-by power generators at the terminal, and will add three more generators next year to allow operations on stand-by power. New generators are already in place at all of Matson’s Neighbor Island terminals.

Matson will also be working with the State Department of Transportation Harbors Division on the expansion of their Sand Island Terminal into Pier 51 — increasing their terminal footprint and capacity by 30%. As part of this State plan, when Pasha moves to Kapalama, Matson will expand into Pasha’s current space, which is adjacent to Matson on Sand Island.

Matson is also redesigning their terminal gate with additional lanes and improved technology that will provide faster access to cargo for our customers in the newly expanded terminal.

“We outgrew our Sand Island space a long time ago, and for years have been operating out of three or four different locations around the harbor, so this will allow us to consolidate all our operations in a single location,” Isotoff says. “This will not only improve operating efficiency, it will reduce emissions and reduce traffic around Honolulu Harbor by eliminating all the extra movement of vehicles and equipment.”

Maui

With regularly scheduled service between California and Kahului, Pasha Hawaii continues to carry a high volume of cargo in support of rebuilding efforts. Within a few months of the fires, the company began shipping mobile homes and portable school units to Maui to provide immediate short-term shelter, along with emergency rations, perishable and nonperishable food and beverages, and medical supplies.

“The volume of cargo shipped from the mainland to Maui continues to remain high,” Pasha says. “As Maui moves its focus from emergency relief to long-term recovery and as reconstruction begins in Lahaina and Kula, we are seeing construction materials and equipment being placed on our ships.”

Photo Courtesy: Matson

Matson – Serving Hawaii since 1882

A proud American shipping company with Hawaii roots dating back to the days of tall ships and horse-drawn carriages, Matson introduced cargo containerization in the Pacific – an innovation that revolutionized the industry and became the worldwide standard – as well as the first automobile-carrying ship in the Pacific.

Matson was also among the first containership operators to recognize an obligation to protect the environment and set another industry standard decades ago with its Zero Solid Waste Discharge policy. Today, the company is working toward goals of reducing fleet greenhouse gas emissions by 40% by 2030 and achieving net-zero total Scope 1 GHG emissions by 2050.

Matson provides industry-leading on-time delivery of essential goods to the economies of Hawaii, Alaska, Guam, Micronesia, and South Pacific islands, and premium expedited service from China to the U.S. West Coast. A key supply chain partner, its dependable U.S.-built, -owned and -operated ships and dedicated terminal assets can be relied upon to consistently deliver the goods that sustain Hawaii’s communities and businesses, as it has for generations.

In recent years, Matson has committed approximately $2 billion to building new, more advanced ships and terminal improvements that improve its Hawaii service while reducing its environmental impact.

Last year, Hawaii Business ranked Matson as Hawaii’s top corporate donor to community programs, having contributed more than $8 million in cash and in-kind services to more than 870 nonprofit community organizations in 2023. Since the pandemic, the company has committed to providing $10 million in shipping services to support community foodbank networks through 2026.

Photo Courtesy: Young Brothers | Connecting Hawai‘i’s communities with 12 weekly sailings, Young Brothers’ customer portal makes interisland shipping simple, reliable and effi cient.

Young Brothers

As part of Young Brothers’ ho‘ohiki to deliver exceptional service, navigating inter-island shipping has never been easier with its enhanced customer portal. Designed with the unique needs of local businesses and residents in mind, this digital tool streamlines shipment management, offering a convenient and efficient solution for users across the state.

Through the customer portal, users can easily:

• Get Rate Quotes: Receive tailored estimates for specific shipments to help plan and budget.
• Make Reservations: Quickly book frequently shipped items with just a few clicks.
• Track Shipments in Real-Time: Monitor cargo with up-to-date tracking.
• Pay Bills Online: Convenient freight payment options for credit account holders, including managing multiple invoices.

With over 3,000 active accounts, Young Brothers’ portal is an integral part of the company’s ongoing mission to provide safe and reliable shipping. Aligned with the company’s broader five-year strategic plan—which emphasizes technological innovation to enhance customers’ experience and operational efficiency—the portal has seen a remarkable 340% increase in users over the past six months alone.

To learn more about Young Brothers, visit youngbrothershawaii.com, email info@htbyb.com, or call (808) 543-9311. For inquiries about obtaining a credit account, please contact ybar@htbyb.com.