Leadership changes are in the works at interisland freight company Young Brothers, LLC.
President Jeremiah “Jay” Ana is stepping down from the role he's held since 2020, the company announced Thursday, July 3.
Frank Almaraz, a "seasoned energy and logistics executive with more than twenty years of experience guiding complex, highly regulated operations through change and growth," has been appointed interim president.
According to the company, Ana will take on an advisory role through the end of the year, "to support a seamless transition." The Young Brothers' Board of Directors will oversee the search for a replacement.
“It was an honor to come back to Young Brothers and work with the dedicated team that was responsible for renewing customer confidence, reconnecting with the communities we serve, and repositioning the company for long-term stability,” Ana said in Thursday's announcement. “With the [Public Utility Commission]’s approval of critical temporary financial relief, the company is on a more stable footing, and I am confident that this is the right moment to pass the baton to a new leader to guide the company’s next chapter.”
The PUC recently approved a temporary 18.1% customer rate increase, which went into effect July 1. The island agricultural product discount for straight load containers and less-than container load cargo have also temporarily increased.
In a June 30 letter to customers, Young Brothers said the company "has not been profitable since October 2023."
"At 2020 rates and without the temporary rate increase, the company projected a net income loss of more than $31.5 million in 2025," the company wrote. "With the temporary rate increase and absent approval of new permanent customer rates, we estimate a net income loss of over $22.5 million.
"Since customer rates were last reset in 2020, operating costs have significantly increased, cargo volume has not returned to pre-pandemic levels, and the company has invested $120 million to improve the reliability of service — including new barges and tugs, customer equipment, vehicles in the shoreside fleet, and Lāna‘i harbor infrastructure enhancements."
The temporary rates will remain in place until Dec. 31 or until any general rate increases go into effect, which ever comes first, the company noted in the letter.
Maui board member Grant Chun said in the July 3 announcement, "The Board thanks Jay for his steadfast leadership in guiding the company through the unprecedented financial impacts of the pandemic— one of the most challenging periods in our history —and for steering us toward major milestones, including investing $120 million in new tugs, barges and other critical equipment to enhance service reliability.”
Almaraz said in the announcement that he has "always been drawn to mission-driven organizations like Young Brothers that provide the critical infrastructure needed to sustain life in the Islands.”
“I am deeply grateful for the chance to serve alongside the highly skilled men and women across the state who make this possible, and I look forward to building on the foundational safety-first culture and advancing efforts to rebuild resilience across the company.”
According to Young Brothers, Almaraz has a degree in industrial distribution from Texas A&M, an MBA from Southern Methodist University, and advanced management training from Rice University. He has previously served as chief power officer at CPS Energy and CEO of Braya Renewable Fuels.
At Young Brothers, he'll focus on day-to-day operations, "strengthening financial footing, and engaging Hawaiʻi’s maritime community to ensure the inter-island shipping lifeline remains reliable and resilient for the future," the company said.
“With an experienced executive like Frank at the helm, Young Brothers will be in good hands while we search for the right person to lead this legacy company into the future,” Hawai‘i board member Emily Porter, who will chair the executive search committee, said in the announcement.
The freight company was founded 125 years ago and transports all ocean cargo that originates and ends in Hawai‘i. There are 12 weekly sailings between the ports of Nāwiliwili, Honolulu, Kaumalapau, Kaunakakai, Kahului, Kawaihae, and Hilo.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
