Matson to raise fuel charge to 6%

By Kelly Yamanouchi
Advertiser Staff Writer

Matson Navigation Co. Inc. said yesterday it will raise its fuel surcharge to 6 percent for Hawai'i service effective Oct. 20.

"As a result of ongoing unrest in oil-producing countries, and in particular, with the possibility of U.S. involvement in a war against Iraq, fuel prices have continued to rise in recent months," said Matson executive vice president Paul Stevens. "We cannot continue to absorb these additional fuel-related operating costs."

Matson uses about 1.6 million barrels of fuel annually, and said the price of a barrel of bunker fuel has increased to $30 from about $22.50 in April, when the company announced its last fuel surcharge increase.

The increase in the shipping company's fuel surcharge — up from 4.75 percent — will add another $10 to the $39 fuel surcharge on top of the $822 average cost of shipping a car to the Islands from the Mainland.

Stevens said the action is "in no way related to the recent defensive shutdown of West Coast ports."

A Matson spokesman said yesterday it is unclear what impact the dock shutdowns will have on the company's financial performance and shipping costs.

Competitor CSX Lines' fuel surcharge is 4.75 percent.

Yesterday, officials with CSX said they are monitoring the effect of oil prices.

"We'll obviously evaluate where fuel prices are at the moment and make some determination in the future," said Brian Taylor, CSX's vice president and general manager for Hawai'i and Guam.