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

Date
2007-04
Authors
Cai, Junning
Leung, PingSun
Loke, Matthew
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University of Hawaii
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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.
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Keywords
economic costs, freightage, Hawaii, produce
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).
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8 pages
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