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Do Hawai‘i Producers Pay Higher Freight Costs for Agricultural Shipments to the U.S. Mainland Market Than Their Foreign Competitors?

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Title: Do Hawai‘i Producers Pay Higher Freight Costs for Agricultural Shipments to the U.S. Mainland Market Than Their Foreign Competitors?
Authors: Cai, Junning
Leung, PingSun
Loke, Matthew
Keywords: economic costs
freightage
Hawaii
produce
Issue Date: Apr 2007
Publisher: University of Hawaii
Citation: Cai J, Leung P, Loke M. 2007. Do Hawai‘i producers pay higher freight costs for agricultural shipments to the U.S. mainland market than their foreign competitors? Honolulu (HI): University of Hawaii. 8 p. (Economics Issues; EI-10).
Series/Report no.: Economic Issues
10
Abstract: As an island economy depending mainly on maritime transportation, Hawai‘i tends to have transportation disadvantage compared to foreign competitors relying on truck transportation. As an economy with a small agricultural sector, Hawai‘i also tends to have a transportation disadvantage compared to foreign competitors with larger market shares. Hawai‘i tends to have a transportation advantage in terms of freight costs as percentage of cargo value, because of the high value of its products. In the results cited, there are cases where Hawai‘i had a higher freight rate in terms of dollars per pound but a lower freight rate in terms of percentage of cargo value. Evidence from this comparative empirical analysis indicates that Hawai‘i agricultural commodities do not have across-the-board transportation disadvantages as is generally perceived.
Pages/Duration: 8 pages
URI/DOI: http://hdl.handle.net/10125/2789
Appears in Collections:Economic Issues, 1997 - present



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