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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? 
Author: Cai, Junning; Leung, PingSun; Loke, Matthew
Date: 2007-04
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).
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.
Series/Report No.: Economic Issues
Pages/Duration: 8 pages
Keywords: economic costs, freightage, Hawaii, produce

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