honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser

Posted at 11:55 a.m., Friday, November 23, 2007

DHX predicts little gain in freight to Hawai'i next year

Advertiser Staff

Advertiser Staff

The general manager of a leading freight forwarding company here is predicting little gain next year in the ocean and air cargo tonnage brought to the islands.

Kane McEwen, general manager of DHX-Dependable Hawaiian Express, said several factors, including a softening of the Hawai'i economy and changes in the business infrastructure, are expected to impact freight forwarders that serve the state. DHX-Dependable Hawaiian Express is one of the largest transportation companies serving Hawai'i.

McEwen said tourism affects the demand for goods that are transported to Hawai'i, and with an anticipated decline in the U.S. economy and rising fuel costs, the outlook for tourism is uncertain.

"More visitors translate into a greater need for products of all kinds to be transported to the islands, from food stuffs to construction equipment," McEwen said.

He said the growth of big-box stores here also will have an impact as they continue to take a bigger share of the retail market. McEwen said the big Mainland retailers work directly with carriers, rather than through forwarders.

The same goes with the military, he said.

"The military is doing things differently today and is taking care of their own material rather than through civilian contractors. As a result, the benefits don't flow out to the general economy as they did in the past," McEwen said.

McEwen did say there are some "positive developments" that should aid the state's economy, such as the low unemployment rate and "reinvigorated" Waikiki.