What is the cost to ship to Guam?

Shipping costs to Guam vary, depending on your needs. If you’re interested in ocean transport, here are the areas to consider:

• Do you have a Less-than-Container Load  (LCL) shipment?
• Do you have a Full-Container Load (FCL)? Different rates apply for LCL vs. FCL.
• What is your point of origin?
• What is your ultimate destination?
• Do you want to use a reliable carrier with newer vessels who sails directly into Guam from the West Coast via Hawaii – or – a carrier with a barge service who sails into an Asian port and then barges the goods out of Asia to Guam (adding a week to the transit)?
• Are you using a motorized carriage vs. a barge service (much slower)?

All these variables will make a difference in the cost of shipping to Guam.

Air freight pricing differences can vary too. Again, consider the origin and destination as well as the expected time frame of the service.

So the answer is, shipping to Guam costs depending on the variable factors involved.

To simplify your quest for a rate, we offer online quotes via our Online Rate Quoter, also you can email us, or you can call and ask for the Rate Department at 888.488.4888. Our friendly folks can quickly and more precisely help you determine the cost of shipping to Guam!

Life in Guam

DHX - Dependable Hawaiian Express started shipping to Guam from the continental USA in 1981, when Founder, Ron Massman, bought a company that shipped to Guam for a grocery distributor. When current president Brad Dechter joined DHX - Dependable Hawaiian Express in 1982, the Guam trade lane became the first trade lane for which he was responsible.

Since DHX - Dependable Hawaiian Express was shipping from California to Guam at that time, Guam helped with the future direction of the company: helping to refine their mainland trucking network to cover more inland points. Also, it helped them to replace their delivery agent on the Island and realize they needed to begin shipping from Guam to California.

Lessons learned in the microcosm of the Guam trade were eventually used across all services. As DHX - Dependable Hawaiian Express listened to the needs of their Guam customers, they changed their name to help the local customers feel their specific needs were being addressed. In 1989, the company opened their trucking operation on Guam, which was so successful it became the impetus behind opening future trucking operations in Hawaii. DHX - Dependable Hawaiian Express also opened shipping from Guam to California and the rest of the USA, an eastbound service similar to their operation in Hawaii. Eventually Mr. Dechter became president of the Forwarding Group of the Dependable Companies and was thankful for his Guam experience that helped to launch his subsequent career.

DHX - Dependable Hawaiian Express wants to thank their many friends in Guam that helped them develop their business on the island and meet the many, diverse needs of the local businesses there.

“Thank you to the people of Guam for the opportunity to handle your shipping to Guam (and Saipan) as well as being good people and helping us in our quest to be the best at shipping to Guam!” -- Brad Dechter, President, DHX - Dependable Hawaiian Express.

DHX - Dependable Hawaiian Express - ocean freight history

Whether we load them ourselves or our customers load them, DHX - Dependable Hawaiian Express specializes in container shipping to Hawaii (and Guam). We’ve built an excellent reputation within the communities we serve by opening operations in the major port cities to better serve our customers. We’ve become members of the community, living and working alongside those we do business with.

Shipping containers to Hawaii isn’t all we do; we also provide local services like public warehousing and local trucking in order to be a One-Stop Shop for our customers’ transportation needs. DHX - Dependable Hawaiian Express opened facilities in Los Angeles in 1980, Oakland in 1981, Seattle in 1987, Guam in 1989, Honolulu, Oahu in 1992, Kahului, Maui in 1996 and the Kona side of the Big Island in 2006.

Striving to do a great job as experts in shipping containers to Hawaii, we use the Matson Navigation company as our exclusive carrier for our container shipping to Hawaii and Guam. Why Matson? When it does not make sense economically, we search for and partner with those who we consider among the best to represent us.With newer, more reliable vessels than their competition, and being in the Hawaii trade for over 100 years, we can’t see using others to do what Matson does so well and with such a commitment to the islands.

Being the best and being committed to our communities is part of who we are. Please visit our Ocean Freight services page to see all of our capabilities.

Shipping to and from Hawaii with one of our best assets: Promoting from within

In our last blog post, we discussed the contributions of Ralph Merolla, our previous Executive Vice President of Sales and Marketing at DHX - Dependable Hawaiian Express, one of The Dependable Companies. With Ralph’s retirement, we say Mahalo and Aloha for his service, even though we will still be working with Ralph in a Sales Guru Emeritus position.

David Bartelt has been promoted to move into Ralph’s position and we feel great about his taking over! David has been with DHX - Dependable Hawaiian Express over 18 years. Prior to joining us, David spent roughly nine years in the trucking industry in Sales. For the first three years with DHX - Dependable Hawaiian Express, David was the Director of Sales in the Los Angeles area. He spent the next five years managing both the Los Angeles and Hawaii Sales efforts.

In 2006, David was promoted to Vice President of National Accounts. We are thrilled that in August this year he was promoted to Senior Vice President of Enterprise Sales, managing the Hawaii and Guam sales efforts for us.

We want to wish David the very best in his new position and good luck with the challenges it will bring!

DHX - Dependable Hawaiian Express has always prided ourselves on being the best of Hawaii shipping and logistics companies. It’s because of our “can-do” attitude as well as our expertise in shipping to Hawaii from the mainland (and shipping from Hawaii to the mainland) and our knowledge of the Hawaiian Islands. Those characteristics separate us from our shipping competition.

After all, it’s where we got our start in 1980, 36 years ago, before our foray into the international and global shipping arena as DGX - Dependable Global Express. DHX - Dependable Hawaiian Express is still our heartbeat.

Whether you ship to Hawaii or you ship to Guam, we’re all about shipping it right!

We’re Dependable. From Start to Finish.

Shipping to and from Hawaii with one of our best assets: Ralph Merolla

If you are deciding which vendor to use for shipping to Hawaii or for your shipping to Guam, you are probably already aware of who DHX - Dependable Hawaiian Express is and what we do. As a leader in Hawaii shipping and Guam shipping, we did not start as the largest or best freight company, but from our incorporation in 1980 until today, we've earned those platitudes.

A large part of the reason is our people. One of our best, Ralph Merolla, who is and has been an integral part of how we got to where we are today, is semi-retiring in a couple of months.

We’ll all miss him!

Ralph Merolla came to DHX - Dependable Hawaiian Express when we acquired the company he was working for in 1981. His role at that point was with the Northern California Sales department. He eventually worked his way up including roles as as Oakland Terminal Manager, Regional Terminal and Sales Manager, Vice President of Sales and Marketing, and today, Executive Vice President of Sales and Marketing.

But here’s the important point: it didn't matter what type of customer you were. If you were shipping a container to Hawaii, delivering a smaller shipment or needing a “shipping to Hawaii cost,” Ralph always stepped in to help, looking for creative ways to help you minimize shipping and logistics costs. All this with an eye to helping you grow your business.

He eventually helped build the DHX - Dependable Hawaiian Express infrastructure and special culture that provides the same excellent service with the same positive attitude today.

Ralph is one of the top members of our management team. To those that work with him or for him, Ralph is a great mentor, coach, and friend.

In 34 years we have never heard him raise his voice. We have only heard him make positive remarks unless he was requested to give his opinion on something. At which point he was honest.

He never seemed to have any ulterior motives; the actions he took were taken with the company’s best interest at heart. He’s DHX - Dependable Hawaiian Express through and through. His responses to questions over the years, plus training, coaching and mentoring, have left a permanent imprint on our culture and who we are.

Ralph will still be working with us, but in a reduced role in his semi-retirement. We are thrilled that he will still assist our customers and us.

That being said, these are huge shoes he leaves to fill, and Ralph’s successor has some catching up to do! After all, his replacement has only been with us 18+ years and is still wet behind the ears.

We’ll miss you Ralph!

Thank you for all your years of service and for making us the winner we are today!

America is great and can be better

We at DHX - Dependable Hawaiian Express and Dependable Global Express try to be “apolitical.”

Someone asked me why we sponsored the radio coverage in Hawaii of the Republican Debates leading up to their national convention. The debates and related primary process are healthy for America. Plus I believed it was the best use of our advertising dollars.

Given the manner in which the candidates were bashing each other, complete with name-calling, derogatory remarks and other “misbehavior,” it was incredibly astonishing, humorous and sad entertainment. We were surprised by the bitterness of the rhetoric, but found the various scenarios enlightening and the unfolding thoroughly entertaining. For our advertising dollar, I felt it was good use of our monies with great exposure.

We’re getting ready to sponsor the Democratic Convention, too. This time we’re sponsoring the Democratic Convention so our Democrat Party constituency out there among our customers does not feel we’re playing favorites. We’re not. We’re balanced.

I have two main thoughts about what I have been listening to in the past few months:

• The Office of the Presidency is one of the most powerful positions in the world. It should not be disrespected. Those running for office should act the part, so as to not reduce the office in stature or reputation.
• Being president of both DHX-Dependable Hawaiian Express and DGX (Dependable Global Express) I have traveled the world. A conclusion reached, and I know I am biased: America is the greatest country of all the countries I have been to. Others are good, but honestly, our freedoms, rights, and processes of civilization including the flow of foods, medicines and trade are unparalleled in the rest of the world. AMERICA IS GREAT. (That does not mean we couldn’t do better.)

Thanks for listening to my explanation and thank you for your business!

When Capacity Issues Thwart the Best Laid Plans

Pasha Hawaii (Pasha) recently took over the ocean carriage and shipping from Horizon Lines (RIP) to/from the US Mainland and Hawaii. Pasha announced numerous changes to the ship to Hawaii sailing schedules and attempted to hit the ground running while reducing staff previously employed by Horizon Lines (Horizon) and not taking on all of Horizons systems.

We like Pasha and we like what they stand for – the American dream of a family-owned business making it big. We know they need to be successful in shipping. But thus far the sound of their boots hitting the ground are a distinctive thud.

Because of service interruptions and schedule changes made by Pasha, Matson Navigation Co. (Matson) has been plotting its own changing course in Hawaii delivery.

Matson has taken over the Alaska trade from Horizon, but Alaska is not known for many trade route shipping issues, and it’s not our core business like Hawaii. What DHX-Dependable Hawaiian Express does know is that Matson has increased the number of vessels serving Hawaii, from nine to eleven, a 22% gain in capacity.

Matson now suffers from space issues in their Hawaii terminal, and chassis shortages in Hawaii. The two problems combined have limited Matson’s ability to get vessels into Hawaii because of too little space for their equipment. They are so cramped they have started giving Young Brothers outer island container loads so Matson is not using their terminal space to store outer island containers. Matson also did this so Matson could then get the chassis back to reuse in Matson’s own “container mounting on chassis” efforts.

This is lots of extra work to keep the propellers turning in a clogged sea of containers. It has turned into quite a quagmire for Pasha and for Matson. Matson certainly isn’t running like the Swiss railroad; they’re congested and their on-time performance is suffering. That said, Matson remains fluid and is taking a lot of steps to improve their timeliness.

DHX-Dependable Hawaiian Express knows Pasha has also made numerous positive moves to shore up their service. The results are starting to show in a positive way.

For those of you watching the shipping and logistics industry, the issues should be short-lived. The folks at Matson will react and take necessary measures to keep merchandise flowing to Hawaii, albeit in the short term, with minor delays. Pasha too will rise to the occasion with the necessary corrections to ensure their new systems and operations function as they should.

We have lots of smart people in the ocean shipping business to Hawaii who are facing challenges in the next couple of months. We remain confident that all will be better by then.

Welcome Aboard Pasha!

DHX-Dependable Hawaiian Express just wants to say “Welcome aboard” to the new container shipping services that Pasha Group is bringing to the Hawaiian Islands.

It’s our perspective that Horizon Lines as a publicly-held company was desperately trying to increase their market share, however they did not understand the importance of making a profit for shareholders. It’s our genuine hope that Pasha Group will help stabilize and bring sensibility to the shipping trade to Hawaii regarding pricing and long-term survival.

Our fingers are crossed that Pasha Group did not pick up the “bad apples” Horizon Lines had accumulated in management along the way. With that management group in place and sales and pricing suspect, Horizon Lines could not make a profit and eventually went out of business. No one should subject themselves to an unstable, unprofitable model with the potential to afflict themselves with the same infection.

That being said, best of luck to you, Pasha Group!

We believe that you coming to Hawaii is a very positive development for all!

At Time of Crisis, Remain Calm

Some customers and employees have asked what our plan is with respect to the current West Coast Owner/Longshoreman Contract dispute. Honestly the plan is not to panic. There is currently a slow down by labor and a reduction in working hours by the owners  who are represented by a group called the PMA. Between the PMA and Longshoremen, there is a good chance there will either be a lockout or a strike within the next few weeks. This is actually good for the West Coast ports and their constituents like us because it will cause the government to invoke the Taft Hartley Act. This will then enforce a 90 day cooling off period, forcing both labor and owners back to work in earnest without all the public manipulation and bad faith bargaining that is making it feel to those negotiating like salt being rubbed into a wound.

Given constraints, we have done our best to minimize delays in every possible way (at great cost and expense) while trying to maintain the service our customers have grown to expect and deserve from us. Our normal two-hour turnarounds at the harbor have become 7-8 hour turns, sometimes with no results.

Communication of sailing schedules, which under current circumstances changes multiple times, has resulted in customers receiving 6-7 emails regarding the actual sailing of a single shipment – the time we have invested in trying to communicate these changes is huge. We have pondered moving our International Operations to the East Coast but until a couple weeks ago, the delays had not been insurmountable so as of now, we have not proceeded in that manner. The PMA understands that these types of delays make no sense, and hence have now ratcheted up the heat with the public, forcing a lockout or strike soon and inevitably the invocation of Taft Hartley.

Our plan:

1. Continue business as usual, do not panic.


2. Continue to communicate with our Customers any delays affecting their shipments.


3. Continue to offer airfreight through DGX-Dependable Global Express for those who must have deadlines met.


4. At the current moment, because so many have tried to move their product off the East Coast or to the East Coast (with a longer transit time) those ports are buried. We are not currently looking at that as a viable alternative. If the Taft Hartley cooling off period does not allow the situation, be it a lock out or strike, to end prior to a month before the cooling off period is over, then we will consider moving to East Coast operations for International shipments.

How Do You Define Permanent?

Yesterday, September 5th, Horizon Lines named a new “permanent” president. A good chuckle. This might be one of the shortest term “permanent”  presidents for a public company in years. Why make such a statement? Here’s the logic.

Prior to the rumors throughout our industry and in public about Horizon Lines selling its Puerto Rico line of business this year, Horizon Lines is, and remains, the largest Jones Act Carrier in the country. Click here for a recent article discussing Horizon’s current state. In the past 10 years, they have been sold at least twice, and have had to restructure their debt once at least, maybe twice. Net result, current shareholders are now debt holders. Subject to a fact check, we believe they haven't had a profitable year in about 5 years. To Hawaii, their ships are old and use really old technology which means they cannot compete cost-wise with the newer vessels that Matson and, to a lesser extent, Pasha now have.

There is plenty speculation among those active in the Jones Act shipping trade as to what the rumors about them selling their Puerto Rico properties and/or line of business means to other trade lanes, Alaska and Hawaii. When we polled our shipping company contacts, we could not get any responses to our questions concerning this. Nothing, not a word. Stonewalled. Someone had to know something!

Then a light bulb went off. Our experience buying other companies came in handy. The only reason we didn’t discover anything on the “coconut wire” was because every ocean carrier with Jones Act business was probably talking to them, and Horizon has good investment bankers who most likely put together Non-Disclosure Agreements with penalties if word were to get out. They must be worried that if it became public knowledge they are selling any of their remaining trade lanes, existing customers would start making deals with other carriers with whom they already have relationships. Neither the buyer or seller want that, so nobody is talking at all, except to say things like “Yes, it will be interesting to see what they do” or “I don't have time to speculate about these things, I'm focused on keeping our business and going after theirs”.

In Hawaii we have suspected for years that Horizon has some sweetheart deals with other forwarders. We’re quite certain those forwarders are watching in angst and may be in discussions now with either Matson or Pasha to try and minimize the impact of a change in carriers. The good news is, this potential change does not impact DHX - Dependable Hawaiian Express at all negatively. We pride ourselves in our outstanding quality of service and had eliminated Horizon as one of our service providers years ago due to the age of their ships among other things.

We speculate these deals are in the making and may be announced soon. Their new “permanent” president’s job may become one of deconstructing Horizon Lines and then liquidating what's left.

How permanent is that?

Horizon Lines Update

The following is an update to our blog published July 21, 2014. We’ve highlighted in red a passage pointing out that Horizon Lines, at some point, has plans to leave the Hawaii market. Our Managers don’t believe they’ll last long enough to sell it, unless it’s soon.

Debt-ridden Horizon Lines in talks to sell Puerto Rican assets to Crowley
Horizon Lines is reportedly in talks to sell off its facilities at the port of San Juan, as well as its ships and routes to and from Puerto Rico, to Jacksonville-based competitor Crowley Maritime.

Industry sources told Caribbean Business that Goldman Sachs is brokering an $80 million deal between Crowley and Horizon.

The talks for the San Juan port facilities and lines are reportedly part of Horizon’s plans to sell all three of its Jones Act routes — San Juan, Alaska and Hawaii — to different buyers for each of these markets.

Last year, Horizon posted more than $100 million in losses and the company has $700 million in debt, the company reported to the Securities and Exchange Commission.

Crowley is currently conflicting with the Puerto Rico Ports Authority over tax credits it wants to cover the estimated $100 million the company will need to invest in port facilities to receive two new ships, El Coquí and El Taíno, scheduled for delivery in the second quarter of 2017.

If Horizon does sell to Crowley, then Crowley could use Horizon’s docks without having to improve their own.

“If Crowley buys Horizon’s ports facilities, Crowley wouldn’t have to make the improvements. All they would have to do is move over to Horizon’s facilities at the dock,” one industry source said. “Crowley was expecting to get tax credits from Ports to make the improvements, but since the government is broke, the authority doesn't want to give Crowley tax credits for this investment.”

Will Horizon Lines Survive?

We have said for at least five years that Horizon Lines current business plan is a recipe for investor disaster. The older management at Horizon Lines could care less about their investors; this has become an issue of “every man for himself,” particularly in Hawaii where management ego and having a job to go to has become more important than longer term profit and survivability. This leads to the investors eventually losing out if/when the business folds.

The following article was written in and is found in the Journal Of Commerce:

Analyst: Horizon Lines faces debt crisis
Joseph Bonney, Senior Editor | Jul 14, 2014 11:35AM EDT

Horizon Lines will have difficulty refinancing its heavy debt during the next two years and may be forced to shed assets, a move that would shake up the Jones Act domestic trade, analysts from BB&T Capital Markets said.

“If Horizon Lines cannot refinance its debt obligations, which come due in 2016, we believe the balance of supply and demand will tip in favor of the remaining vessel operators” in the Jones Act trade, BB&T said in a research note.

“Our sense is Horizon will no longer be able to kick the can down the road because the company’s debt obligations keep growing, increasing at double-digit interest expense, and that Horizon will have to shed assets,” BB&T said.

Horizon skirted bankruptcy in 2011 with a refinancing that left the company with a heavy load of high-interest debt. BBT noted that the company has more than $100 million in interest debt obligations due in each of the next two years and more than $600 million due in 2016.

The company’s earnings before interest, taxes, depreciation and amortization were $95.3 million in 2013, and are expected to be only $85 million to $95 million this year, BBT said.

Horizon posted a GAAP operating loss of $8.6 million in the first quarter, compared with a loss of $4.3 million a year earlier.

“The company continues to incur debt to help fund operations, and as it struggles to turn a profit, we expect the debt load will rise and with an aging fleet in need of repair and overhaul and significant capex requirements, the ability to successfully turnaround the company is a challenge to say the least,” BB&T said.

Horizon’s ships have an average age of 37 years, making its fleet among the oldest of any liner company in the world. They compete in Puerto Rico, Hawaii and Alaska markets where competition is increasing and rivals are introducing modern ships.

Horizon’s future has been the subject of industry speculation since Sam Woodward, the company’s CEO, resigned June 27 with a year left on his contract. Board member Steve Rubin, principal of intermodal consulting firm InterPro Advisory LLC, was named interim CEO.

Rubin could not be reached for comment today.

Six former executives of Horizon and Sea Star Line were sentenced to prison in connection with a price-fixing scheme that began after Navieras exited the Puerto Rico market in 2002 and continued until federal agents raided company offices in 2008. Horizon, Sea Star and Crowley pleaded guilty to antitrust violations.

The market for carriers serving Puerto Rico’s depressed economy is “oversaturated,” BB&T said. Sea Star and Crowley have announced LNG-powered vessels that will compete with Horizon’s aging ships.
Horizon also faces challenges in the Hawaii market, where Pasha is introducing a second ship, and Alaska, where TOTE soon will have LNG-powered ships that unlike Horizon’s will comply with new emissions requirements.

The aging ships in Horizon’s fleet don’t comply with environmental rules that will require Jones Act domestic vessels to use LNG or low-sulfur diesel by 2020.

“Any way you slice it, Horizon Lines is looking at a significant capex spend the next couple of years just to bring all of the company’s vessels into compliance with current environmental laws,” BBT said.

BB&T said that with the carrier&rsquos competitive and capital investment challenges and $500 million in debt as of the first quarter, “it is hard for us to envision how Horizon turns things around.”

Shipping Lessons Learned

Although we’ve been DHX-Dependable Hawaiian Express (DHX) since 1982, in 1999 we joined the international freight forwarding industry as DGX with the assumption of the company was going under. With DHX we had historically focused on selling to shippers, however the beneficial cargo owners (BCO’s), for DGX were primarily other freight forwarders. We felt with time, our DGX customer base would eventually change and be made up of a few loyal forwarder partners, with more emphasis on customers who were shippers/BCO's.

Our study of the international forwarding community revealed that serving other forwarders as an NVOCC was a fruitless business. Many NVO’s had failed and been acquired by others, with their business folded into the business of the acquirer. So, our thrust was to build on the base forwarder business with BCO business. 15 years later we see we have failed in certain trade lanes, but made progress in others.

The question is how to turn those failures into successes.

In the meantime, We have learned valuable lessons:

1. You cannot teach a domestic transportation salesperson the international business easily and rarely successfully. When you attempt to train, the salespeople want to sell what they feel comfortable with, and lots of what they sell in the domestic trade is based on value, that is how you differentiate yourself in the market plus a competitive price. When dealing with other forwarders, such as our international business was, selling is primarily focused on one thing - price, given that service between most NVO’s to the forwarders is relatively the same. So, when selling value to BCO’s and price to other forwarders, not only do the salespeople have to have an extended knowledge of the product to be able to sell to both forwarders and BCO’s, but their salaries and talents are minimized when selling to forwarders because their focus is based on delivering a cheaper price, as opposed to product differentiation and value.
2. Selling to BCO’s for international import and export business requires not only product knowledge and differentiation, but also an infrastructure and expertise to support it. Where freight forwarders know the import /export rules and regulations, a BCO, depending on size, may not. So all the sales associates in your office need an in depth knowledge of your service. Basically, the BCO needs to rely on your expertise to protect and serve them. Add to this a domestic sales force that’s really not familiar with international freight and you do not get warm, fuzzy feelings of confidence if they go to an associate in the international business with a BCO question, and then get a response they do not believe is a knowledgeable, professional response. They feel exposed that they are placing their existing accounts at risk, and soon stop selling a service they don’t know and/or feel uncomfortable with.
3. If management feels changing to a different customer base will hurt their area on the surface they may support the change on the surface only because leadership is pushing for it, but they probably are not expending energy to make it happen. During the time the change is being made, they will look lesser to themselves and the boss, so it is against their human nature to support something that may hurt them.

Many will talk the talk, but will not walk the walk. Possibly this group of managers does not have the expertise needed to teach their team because they have grown up serving other forwarders, and cannot figure out how to serve BCO’s.

A manager not wanting to look lesser, coupled with a lack of appropriate knowledge and/or abilities to teach what they have learned from years of experience, can potentially stop upper management’s thrust to a different type of customer base in its tracks.

So where do we go from here? We are always, hopefully, learning, changing and evolving. More to come on these challenges.

A Clean House

In our various offices and freight facilities, our standards have always included having/keeping a clean house, and ensuring it’s kept as clean as possible on a continuing basis. It’s an issue of pride in what we do, how we do it and our image in doing so. We want to be the best in everything we touch or are involved with. That’s why we were so happy with the results of a recent audit we had performed on us as part of our ongoing commitment to meet our food shipping customers’ needs.

The audit, called “Distribution Center Food Safety and Quality Systems Audit” received a 96.7 score out of a possible 100 points, indicating an outstanding outcome. Our operations management and systems management really have pulled together to ensure, on a consistent, continuous basis, we are taking appropriate measures to keep our facility clean and are surpassing current food shipping standards. This audit is performed annually at the request of certain customers, using an independent, outside third party with expertise in food handling and warehousing, and we are delighted with the results. To all of our Associates reading this - way to go! Thank you.

The audit was performed by Silliker, Inc., a Merieux NutriSciences Company, who works as a third party consultant in the food industry performing audits like the one performed for DHX - Dependable Hawaiian Express. A copy of the audit is available upon request by email: cammie.laster@dhx.com.

This is another way we like to point out the “Dependable Difference” to our Customers. Thank you for your support and your business!

How competitive are the Hawaii/Guam Shipping Lanes?

A historical review of the Hawaii and Guam shipping lanes will show you there have never been three large ocean carriers shipping from the mainland to the Hawaiian Islands and Guam. Historically, there is Matson, and then there is Brand X - whoever it may be. Brand X is usually someone Matson “lets” into the trade because they see them as being a threat, but a manageable threat.

The last time Matson had a real competitor was in 1974 - I believe a company called Seatrain Lines. Seatrain Lines ran a Hawaii service from 1969 until 1974. They actually competed against Matson service-wise - so, when Seatrain Lines (which had a roughly 20% market share of the Hawaii Trade after being in the business five years) ran into financial difficulties, Matson acquired certain property improvements and rolling stock (keeping anyone else from getting them) and the competitor (Brand X) left in the trade was a weaker, more “manageable” ocean carrier, US Lines.

The winds of change are among us, and right now, nobody is talking. We do know that Pasha Group, the newest Hawaii ocean vessel operating carrier, did not renew their intra-island shipping permit, so they can no longer compete with Young Brothers on intra-island freight moves. Plus when their new vessel comes, they will not have the equipment available to service all the islands themselves in a timely manner.

We also know that Horizon Lines who evolved from US Lines into Sealand into CSX Lines and then into Horizon Lines has old, unreliable vessels which have a tough time staying on schedule given all the mechanical issues their old vessels have.

Pasha, after their new vessel (their second vessel) is operating, will only have one vessel that can take more than a small amount of containers. Between Pasha and Horizon Lines, I believe that sooner or later their managements will realize the benefits of working together, and try to solidify both of their strengths in one “not publicly offered” combined service when they are bidding for the business of steady, weekly or twice weekly shippers/consignees.

Matson will continue to maintain a roughly 70% market share (100% for Guam) until a serious competitor with lots of $$$ gets involved.

Frankly, I do not believe anyone else wants to/can take on Matson given the investment as well as the stiff competition.

The many cultures of shipping and happy holidays

Having a group of companies shipping cargo to Hawaii, Guam and worldwide involves people from many cultures. This may seem like a statement of fact, but when you think of DGX (Dependable Global Express), DAX (Dependable AirCargo Express) or DHX - Dependable Hawaiian Express, do you think of many different people, in all different shapes and sizes, with differing personal attitudes? We hope not!

What we hope to convey is the quality services we provide, no matter who you speak with, and how that manner of conducting business is consistently how we approach our business globally.

It isn’t easy to manage differences. The holidays are a cultural “mixed bag,” because different people within cultures, in different areas of the world, may or may not believe in Thanksgiving, Hanukkah or Christmas. What is important is the spirit of kindness and warmth and caring the time of the year brings. I am one individual who wishes all business were conducted with the same spirit all year long — what a better world we’d have! How less stressful would your daily duties/responsibilities be?

This year, we will be sending out ecards — digital Holiday greeting cards — to remind our customers and vendors how focused we are on the environment and the future. Most importantly, we remind those we care about of the true spirit of the Holidays, and hope they catch the spirit and enjoy the season. Happy Holidays to all of you!

As always, thank you for your business during the past year - we appreciate it! Ho Ho Ho!

Adopt-A-Highway

If you live in the USA, you could be driving down the road and see that sign that states “Adopt -A-Highway.” Haven't you wondered how you do this, what it takes, what civic responsibilities you have to perform when you adopt?  Having just lived through this experience, we feel great about it and want to share our experience!

Our “Highway” adoption was coordinated by “Adopt-A-Highway” and recommended by the Long Beach Chamber of Commerce - both a pleasure to work with. The street we adopted gets cleaned once a month.

We have adopted a very busy section of Pacific Coast Highway in a very popular/populated area.  We feel a sense of ownership and civic pride. Just like the wonderful feeling my wife and I have had adopting plenty of pets over the years. You may know that Long Beach is a great port city, the center of a whirlwind of ocean shipping and freight forwarding companies. It’s where we live and work. Hundreds of millions have been invested in renovating the downtown area of Long Beach.  It is clean, beautiful, and a wonderful place to live.

We are bubbling over and proud of the fact that one of our companies, Dependable Global Express (DGX) is doing its civic duty by "Adopting -A-Highway," in Southern California. Hopefully some of you will see our sign, and the cleaner highway ahead! Now if we can only make it through those teenage years...

When a frequent, informational email matters and my reaction to "What’s Not There?"

Recently, I realized that one of our past ocean carrier partners had taken my name off of their “Notifications” email address listings. This surprised me.

Normally I must unsubscribe to the email “spam” I don’t want (if the filter hasn’t caught them), the sender just doesn’t delete me. I was truly surprised, until I realized why.

The sender of these “Notifications” emails is an ocean carrier that has vessels with an average age of somewhere around 30 years old.

In the shipping industry, that’s old. As vessels age, similar to an automobile, they start developing mechanical issues, and sailing schedules become harder to maintain, due to “mechanical” problems. Schedule delays mean shipping delays and problems.

Because of the delays in their service, and our policy of offering a “Best in Class” service, we at DHX-Dependable Hawaiian Express no longer use them and have switched to a competitor. What’s worse, in my opinion, is that their competitive disadvantage will continue – there is no end to the issue in sight for them; they don’t have the funds to replace the vessels.

Occasionally, in sales calls our sales professionals will say “We use xxxx, because Brand Y has unreliable, older vessels and we promise the best quality of service. Best in Class is a mission for us.” Apparently, this information got back to Brand Y, and their reaction was to remove me from their email listing.

Funny thing is, others in our company forwarded their last message to me, because they were surprised by the message content.

Where in the past “Brand Y” had always given an explanation as to why a vessel is late, now they do not. A lack of information is not good in the shipping business, particularly when you are a Customer trying to ascertain your supply chain weaknesses and risks. The last notification just stated “the vessel will be late” and discussed how it impacted their transfer cargo at destination. We wonder why there's no explanation.

We use the promotion line “Dependable from Start to Finish”, and we at DHX-Dependable Hawaiian Express, DGX and DAX are here to help. Visit us. Call on us. Depend on us. We’re the supply chain partner you can Depend on!

My advice to you: Caveat Emptor.

Want answers to your shipping questions?

• Odd sizes?
• Proper dimensions and weight?
• Pallets
• Shrink wrap?
• Handicapping the freight forwarder; the space is already occupied.

When you are shipping less than containerload ocean or air  cargo to any destination, ensure the Freight Forwarder you are using has the proper dimensions and weight. This is extremely important as your charges will be based on one of those items or a combination of them. It's always good to consider  the following:

1. If your freight is initially shipped on pallets, will it be stripped off of the pallet when loaded into a container or put into an airplane? If your response is yes, then do not include the pallet  weight or dimensions in your totals for ocean or air freight charges purposes.


2. If your freight is shrink wrapped with a sign that states “Do not break shrink wrap” then include the pallet weight and measurements in your calculations.


3. If your ocean freight weighs over a certain amount per cubic foot (Hawaii and Guam cargo) or meter (International freight), then you may get charged with a “density charge” because the freight is disproportionately heavy, and it may mean the freight company cannot completely fill a container because it then would be too heavy to transport legally. Similarly, if the freight is odd sized or longer than a certain length you may be charged an extra charge for the Forwarder having to take extra time to block in the pieces or load around them.


4. Remember that on odd sized pieces that you take the highest, widest and longest point to determine your overall measurement. So, if something in your shipment juts out past the edge of a pallet, even if only in one spot, you will be charged as if the entire shipment juts out over the pallet. The argument for this practice is that that space is lost in the container, because the Forwarder cannot load anything with a flat surface up against it because the space is already occupied.


5. For airfreight, whether Hawaii or Guam or International cargo, there are also dimensional calculations based on the density of the freight. However, the end result is the opposite of the ocean shipment. For airfreight, similar calculations take place, but you are charged for dimensional weight used for the lighter freight, not the heavier freight. The reason for this is that there is limited space in an aircraft, and, unlike ocean freight, where charges are based on cubic feet (Hawaii and Guam ) or cubic meters (International), airfreight charges are based on weight.


6. More information on the whys? With the limited space in an airplane, as well as its ability to put only so much freight weight-wise into the plane, if the plane was only filled with light freight then the total revenue charged by the airline would be less than they theoretically could charge with a mix of light and heavier freight. Thus, the calculation computes a dimensional weight, and you may be charged additional weight for your shipment if too light.

If you need more information, in the FAQ or Conversion chart sections of our websites — DHX - Dependable Hawaiian Express, DGX - Dependable Global Express, and DAX - Dependable AirCargo Express — there is a more complete explanation and examples of the computations.

Horizon Lines Makes Plans Diesel Engine Conversion

On June 25, 2013 – Horizon Lines, Inc. (“Horizon”) announced that it plans to convert the power plants on two of its steam turbine cargo vessels to modern diesel engines capable of burning conventional liquid fuels or liquefied natural gas (LNG). One of these vessels is supposedly going to be used in the Hawaii Ocean Freight Trade Lane.

Can we say congratulations? First let’s see if we understand correctly. Horizon Lines, which have some of the oldest Jones Act vessels still seaworthy but barely under 40 years of age, announced plans to reconfigure 2 of these older ships into vessels containing “modern diesel engines”.

Our question is how are they going to pay for them? Horizon has recently undergone an arrangement for the benefit of creditors, and are paying an interest rate of between 13% and 15% on their current debt load, if we’re reading this correctly on their current Form 10-K filed with the Securities and Exchange Commission. (If we read it wrong, we apologize, but it is a lengthy and verbose document that appears to have been designed to put the reader asleep.)

Horizon doesn’t have much operating profit, and now that Matson Navigation Company, who has newer and more fuel efficient vessels, has reduced their fuel surcharges four percentage points in the last three months, that little financial “windfall” will disappear, impacting Horizon’s profit outlook in a negative way.

All we want to know is how they are going to pay for it, and how they'll be able to keep the rest of their old fleet operating as the fleet ages.

The key question to ask is “Are they looking for a White Knight?” Someone willing to inject a billion dollars into them for new equipment? Or is there someone with newer, better equipment waiting to step in someone with more than two Ro Ro (roll on, roll off) vessels. Someone who may have a barge system already available and in place?