New carrier pledges lower fees

By Shayna Coleon
Advertiser Staff Writer

Santa Maria Shipping Co., a new container ship company based in California, said it will begin moving goods to Hawai'i for less than what the state's leading carriers, Matson Navigation Co. and CSX Lines, now charge.

Santa Maria announced yesterday that it will launch the first direct service between Southern California and Barbers Point Harbor, O'ahu, and Kahului Harbor on Maui in 2003.

Santa Maria president Stas Margaronis said his new U.S.-made ships will be more fuel efficient than his competitors', allowing the company to charge less.

The new company is entering the market amid slowing demand for freight between the Islands and the Mainland.

"Adding another carrier makes absolutely no sense, considering there is already more capacity than volume to be shipped," said Brian Taylor, vice president and general manager of CSX Lines for Hawai'i and Guam. "I just don't know how adding more capacity to this market will be profitable."

Matson's parent firm, Alexander & Baldwin Inc., said last month that slower demand for its container service was part of the reason its second quarter profit will likely fall as much as 15 percent.

Still, Santa Maria is moving forward with its plan and says it will save Hawai'i shippers as much as $20,000 a year for a customer shipping one weekly westbound, 40-foot container.