Horizon Lines will tack on its 3.5 percent increase in one of three ways depending on the item being shipped. The charges are calculated based on either weight, volume or unit. Horizon's terminal handling charges will go to $265 from $240 for westbound containers and to $135 from $110 for eastbound containers.

Both shippers will boost their handling fee per car to $40 from $35.

The increase in shipping charges is in addition to three fuel surcharge hikes by Matson and Horizon this year.

"Oh my gosh, you're kidding!" said Mark Elwell, owner of Bamboo Flooring Hawaii in Honolulu who spends $140,000 a year shipping 35 containers. "I have to factor that into my cost of goods. Unfortunately, the consumer will have to carry that cost."

For a 40-foot container carrying 2,280 20-pound bags of rice, the additional $100 translates to 4 cents per bag, said Jeff Hull, a Matson spokesman.

For a car being shipped through Matson, the base rate will go up to $874 next year from $849.

Add the fuel surcharge and $40 terminal fee, and the total cost comes to $994.

Matson said higher labor costs as well as capital investments prompted the increase. Matson, the largest subsidiary of Hono-lulu-based Alexander & Baldwin, is spending $220 million for two new ships, $35 million for new container equipment, $7.5 million in information technology costs, among others.

The rate increase "will cover contractual operating costs and lets us continue to reinvest in our Hawai'i service," Hull said.

Horizon spokesman Kuuhaku Park said higher operating costs, rising workers compensation and health care expenses, required security upgrades, addition of 900 new containers and ship modifications led to the increase.

The service rate is considered the base rate. Terminal handling includes the cost of dock labor, while the fuel surcharge is tacked on when oil prices rise.

The surcharge is calculated as a percentage of the service rate.

In October, Matson and Horizon raised their fuel surcharge to 9.2 percent from 8.8 percent. They raised the surcharge to 8.8 percent from 8 percent in June after having raised it to 8 percent from 7.5 percent in March.

The service rate goes up nearly every year, Hull said. This year, Matson service rates rose by 4.4 percent or $125 per Westbound container.

Horizon's increases have been similar to Matson's, Park said.

Matson and Horizon began assessing the terminal handling charge in 2003.

Hull said the charge is standard in the industry. In the past, Matson has absorbed these costs until "it grew to a point that we can't absorb it," he said.

The fuel surcharge could see a decrease and even disappear, Hull said. The surcharge is added after Matson assesses trends in oil prices. Since crude oil prices have been falling, a dip is possible. Hull said Matson cancelled the surcharge in 1998 but has resurrected it since 1999, when it was 1.75 percent.