Tourists, in recent pre-COVID-19 years, made up about 15 percent of the Hawaiian islands’ population on any given day. Tourism has been almost non-existent in Hawaii for months, and in September Hawaii had the highest unemployment of any state in the nation at 15.1 percent. A large portion of the unemployed worked in hospitality.
Nobody expects tourism to rebound near 2019 levels for months or perhaps years, so tourism will continue to negatively impact the Hawaiian economy.
With that said, Matson, the largest container carrier to Hawaii, reported a less than 1 percent decline in freight volume in the third quarter. Islanders are buying goods instead of traveling, and the federal government put stimulus money into the economy earlier this year. We don’t know if people will continue to spend nor if the government’s future help will be as impactful going forward.
At the end of the day, any real growth in Hawaii will be tied to tourism increases.
In Guam, tourists are mostly from Japan and South Korea, where COVID-19 hasn’t been as widespread as in the US If tourists return “faster,” the Guam economy will benefit and we could see a return to “normal” freight volume. The military continues to gradually build infrastructure to house a larger number of marines, and that could also have a positive impact on cargo volume.
Freight forwarders will continue to be very helpful in navigating the ocean shipping industry to Hawaii/Guam. We understand the different rules that may apply to shipping to a US territory like Guam, instead of a state like Hawaii. A forwarder also has knowledge of the various carriers’ tariffs, which will help obtain the least expensive cost available. And the forwarder understands the geography and required documentation — which is important given there are numerous islands in Hawaii and a small mistake can cause major delays and added costs.