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The Honolulu Advertiser
Posted on: Tuesday, March 20, 2007

California shipping bill could hurt Isles

By Rick Daysog
Advertiser Staff Writer

The Chamber of Commerce of Hawaii said that local consumers could wind up paying $34 million a year in additional shipping costs under a proposal being considered by California lawmakers to boost the fee on containers that leave that state's ports.

In an e-mail to members yesterday, chamber president Jim Tollefson said the California Legislature is considering a $30 fee for all 20-foot equivalent cargo containers that travel through the ports of Los Angeles, Long Beach and Oakland.

That fee would affect about 90 percent of all goods shipped to Hawai'i, Tollefson said.

"We believe this bill, if passed, will have a major negative impact on Hawai'i's economy, the maritime industry, and raise the cost of living for Hawai'i's people," Tollefson said.

Horizon Lines, the state's second largest shipping company with about a third of the market, opposes the California measure.

Horizon spokesman Ku'uhaku Park said the additional costs would be passed along to consumers.

Park said the vast majority of the food, clothing, cars and building materials shipped to Hawai'i would be affected by the new measure.

Jeff Hull, spokesman for Matson, had no immediate comment. Matson is the state's largest shipping company.

Proceeds from the fee would be used to improve California's congested ports and to reduce air emission in that state, according to language in the bill introduced on Feb. 23.

The fee would take effect Jan. 1, 2009.

The chamber said its maritime committee brought the issue before state Rep. Joe Souki, D-8th (Wailuku, Waihe'e, Waiehu), who introduced a House resolution urging California lawmakers to find alternative funding mechanisms for its ports.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.