The Public Utilities Commission of Hawaii convened for the second day of the evidentiary hearing regarding Young Brothers' 2025 Rate Case, focusing on the financial struggles of the Less than Container Load (LCL) service. This service, which is crucial for transporting goods to smaller communities, is reportedly losing an estimated $25 million annually, raising significant concerns about its sustainability and operational efficiency.

During the hearing, a key witness discussed the challenges faced by Young Brothers (YB) in maintaining profitability for the LCL service. The witness acknowledged that discussions about the service's financial losses began approximately five years ago, but concrete actions to address these issues have been limited. Despite attempts to restructure operations and improve efficiency, the profitability of LCL has continued to decline, indicating that previous strategies have not been effective.

The witness highlighted the complexity of the LCL service, which is essential for delivering both agricultural and non-agricultural goods to remote areas. The need for this service remains strong, particularly for communities reliant on essential supplies. However, the witness noted that the changing dynamics of shipping and cargo movement have posed additional challenges that are beyond YB's control.

Efforts to enhance operational efficiency have included increasing oversight and separating cargo drop-off and pick-up processes to reduce congestion. Despite these measures, the witness admitted that more could have been done to reverse the trend of financial losses. The discussion also touched on the potential for reconfiguring the LCL service to better meet community needs while minimizing losses.

As the hearing progresses, the implications of these discussions are significant for both Young Brothers and the communities it serves. The ongoing financial struggles of the LCL service raise questions about the future of essential transportation services in Hawaii, particularly for smaller islands that depend on reliable cargo delivery. The commission's findings and recommendations will be crucial in determining the path forward for Young Brothers and its operations in the coming years.