Matson's 2010 Westbound Hawaii Service Rates to Increase by $120 per Container
OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 24, 2009--
Matson Navigation Company announced today that it will raise its rates
for the company’s Hawaii service by $120 per westbound container and $60
per eastbound container, effective January 3, 2010. Matson estimates
that this increase will raise rates by an average of 3.8 percent. The
increase will be filed with the Surface Transportation Board. In
addition, Matson will raise its terminal handling charge by $125 per
westbound container and $60 per eastbound container, also effective
January 3, 2010.
“This rate increase will help offset rises in operating costs and
support ongoing investments in our Hawaii service,” said Dave Hoppes,
senior vice president, ocean services. “While Matson recognizes this is
a difficult time economically, this rate adjustment is consistent with
our longstanding philosophy of implementing modest, incremental
increases as necessary to maintain the highest level of service to our
customers. Over the past several years, Matson has been diligently
implementing cost reduction measures across-the-board, without
undercutting the quality of its service. These initiatives have included
workforce reductions and laying up two Matson vessels to ensure the
company provides the most economical service possible. Nevertheless,
Matson remains committed to making long term investments that will
provide the state with a strong ocean transportation infrastructure.
Since 2003, Matson has invested nearly $600 million in fleet
enhancements, including over $500 million for construction of four new
containerships. Matson also continues to invest in new container
equipment, information technology and enhancements to its terminal
facilities.”
Matson’s terminal handling charge was first implemented in 2003 and is
designed to recover a portion of the costs associated with the movement
of cargo through terminals. This charge is standard in the industry and
appears as a separate line item at the bottom of the company’s freight
bills.
“Terminal handling costs comprise over 40 percent of Matson’s operating
costs,” said Hoppes. “Matson continues to absorb most of the costs
associated with terminal operations, the majority of which are driven by
factors that are outside of our control, but needs to pass on some of
the expenses to our customers.”
Matson is a wholly owned subsidiary of Alexander & Baldwin, Inc. of
Honolulu (NYSE:ALEX).
Source: Matson Navigation Company
Matson Navigation Company
Jeff Hull, 510-628-4534 (public relations)
JHull@matson.com