Business

Matson Raising Hawaii Shipping Rates

November 28, 2012, 3:19 PM HST
* Updated November 28, 3:56 PM
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Matson, Inc. announced today that it will raise its rates for the company’s Hawaii shipping service by $175 per westbound container and $85 per eastbound container.

The increased rates, which are effective January 1, 2013, will be filed with the Surface Transportation Board.

In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective January 1.

Matson estimates that the combined increase of both the rate adjustment and terminal handling charge will result in shipping costs rising by an average of 5.6%.

Historically, Matson announced average percentage increases based solely on the rate increase, excluding terminal handling charges.

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As of last year, it is now combing both numbers for the average percent increase in the interest of greater transparency.

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“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.

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.

The charge appears as a separate line item at the bottom of the company’s freight bills.

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“Terminal handling costs comprise approximately 40 percent of Matson’s operating costs,” said Hoppes.

“Matson continues to absorb a substantial amount of the expenses associated with terminal operations, the majority of which are driven by factors that are outside of our control.”

In a separately released statement, Matson also said that it will not seek a general rate increase for the company’s Guam and Commonwealth of the Northern Marianas Islands service.

Matson will also not seek a general rate increase for its service to the Republic of Palau, the Federated States of Micronesia and the Republic of the Marshall Islands.

However, the company will raise its transshipment fee for these islands by $100 per container in order to recover costs associated with transshipment through the port of Guam, as well as increase its West Coast terminal handling charge by $50 per container, both effective January 20, 2013.

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