1 - American Memory

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