Business

Matson Reducing Fuel Surcharge

July 2, 2013, 12:48 PM HST
* Updated July 2, 4:04 PM
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Matson Inc. announced today that it is lowering its fuel-related surcharge for its Hawaii service by 2%.

The decrease from 36.5% to 34.5% is effective Sunday, July 7.

Matson attributed this and previous decreases to recent moderation in bunker fuel prices.

It’s the third time this year that Matson has reduced its Hawaii fuel surcharge.

In March, the company announced that it was reducing its surcharge from 43.5% to 40%. Matson decreased its surcharge again in April, lowering it to 36.5%.

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“For most customers, this downward adjustment represents a reduction in shipping costs ranging from $45 to $80 per container,” said Dave Hoppes, Matson’s senior vice president for ocean services said in a statement.

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Hoppes said the firm will continue to monitor fuel costs and adjust the surcharge accordingly.

He added that while Matson has made a practice of giving 30 days notice for upward rate adjustments, it passes on downward adjustments to customers as soon as possible.

The last time Matson increased its fuel surcharge was in October 2012, when it raised rates 4.5%.

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The surcharge decrease comes a year to the day that Matson Inc. announced it had officially separated from its parent company, Alexander and Baldwin Inc.

Matson was founded in 1882, and was previously one of Alexander and Baldwin’s diversified corporations.

Matson is one of the main US carriers in the Pacific, with 17 vessels including container ships, custom barges and roll-on/roll-off vessels. It offers shipping services to Hawaii, Guam, Micronesia and the mainland US, as well as expedited service from China to Southern California.

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