A much-touted plan to start a new Hawaii ocean cargo transportation service is dead in the water.
Two companies that were working to launch what would have been a third major carrier hauling cargo between the West Coast and Hawaii two years from now announced Jan. 26 that the project is on “hold” and that a nonbinding commitment to buy four new ships will expire Wednesday.
The announcement wasn’t a surprise to some industry observers who had been closely following, and were skeptical of, the deal between New Jersey-based maritime company TOTE Inc. and Philadelphia-based shipbuilder Philly Shipyard Inc.
Yet the loss of expected benefits for shippers and consumers from a new competitor in the market served by only two carriers represents a letdown for many who hoped the plan would be realized.
