1 - American Memory
1 - American Memory
1 - American Memory
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
235<br />
the other states, even If a major transportation strike occurs, supplies keep mov-<br />
ing by alternate methods of transportation. For example, if railroads are struck,<br />
barges, coast-wide shipping and trucks are available.<br />
Any interruption of shipping or a threat of an interruption has impact on<br />
Hawaii's economy. Because of the great concern about shipping stoppages over<br />
the years, reports and studies have been drawn up to high-light Hawaii's vulner-<br />
ability to shipping strikes. In reviewing these reports and checking the present<br />
situation, we find that:<br />
1. The economic effects of shipping strikes on Hawaii are grave. A review<br />
of certain economic Indicators during the 1949 and 1952 stoppages shows that<br />
consumer's price index increased more than on the mainland, that the volume<br />
of retail trade and the volume of building and construction declined and were<br />
well below that of the mainland, that unemployment Increased during this<br />
period, that total personal Income declined and that the number of tourists arriv-<br />
ing in Hawaii during the strike period was well below the expected numbers.<br />
2. No one will go hungry because of a shipping strike; and the Oovernor has<br />
power to use emergency shipping for critical commodities.<br />
3. Stockpiling as a hedge against maritime strike is not feasible. A special<br />
study of stockpiling as an answer to shipping Interruptions points out that<br />
businessmen In Hawaii already have excessive Inventories, many times, one to<br />
two months more inventory than is normal business practice on the mainland.<br />
It is also impossible to stockpile certain perishable and semlperlshable Items<br />
for too long a period. Therefore, stockpiling is already common practice and<br />
further Increases in inventory as a hedge is not feasible.<br />
4. Approximately 1.7 million tons of cargo (excluding petroleum) is brought<br />
into Hawaii by ship and of this total 87% is brought in on U.S. flag lines. A<br />
stoppage involving U.S. ships therefore has great impact. A current review of<br />
available air freight cargo space shows that only 1,015 tons can be used for<br />
additional cargo per week on all lines—scheduled domestic, military contract<br />
and foreign.<br />
It would take a full month's usage of total cargo capacity on all lines to equal<br />
the carrying capacity of one ship. Even then, some heavier, bulky items could<br />
not be moved by air freight.<br />
5. The current situation seems to be that wliile certain items will become<br />
critically short within a week to two weeks, inventories in general will be ade-<br />
quate for about 30 to 45 days. We find also that this threat of an Interruption<br />
of shipping coming on the heels of the adverse situation created by the West<br />
r-oast container boycott earlier this year already has created impact on the<br />
Hawaii economy. Also, although a martlme strike may be averted, or be short-<br />
lived, the impact created through business community's attempt to hedge against<br />
possible stoppage will be reflected In the cost structure.<br />
Details of the various reports and information gathered are contained in the<br />
following sections:<br />
I. Economic Effects of Shipping Strikes on Hawaii.<br />
II. Emergency Relief Shipments and Stockpiling.<br />
III. Surface Cargo Shipments and Cargo Carrying Potential of Airlines Serv-<br />
ing Hawaii.<br />
IV. Assessment of the Present Situation.<br />
ECONOMIC EITECTS OF SHEPPINO STBIKES ON HAWAU<br />
Over the years, Hawaii has been in the position of having Its shipping lines<br />
interrupted. The chaotic effects in Hawaii, when its supply lines with the main-<br />
land United States are cut, are diflicult for a non-resident of Hawaii to visual-<br />
ize, for no similar situation has arisen, or would be allowed to exist on the<br />
mainland.<br />
A shipping or longshore strike that interrupts transportation between Hawaii<br />
and the mainland creates a far greater economic Impact on the State than does<br />
a "national emergency strike" on the mainland.<br />
The degree of economic impact of a major mainland strike results from the<br />
number and extent of specific effects. When a strike Is of such proportion and<br />
duration as to merit the designation of a national emergency strike, the impact<br />
of these specific effects is great. Hawaii's economy is so sensitive to shipping<br />
interruptions that the impact is almost immediately felt by every citizen In the<br />
ftate.