Matson said it will raise its fuel surcharge from 10.5 percent to 11.5 percent beginning July 3 for its Hawai'i and Guam/Commonwealth of Northern Mariana Islands services, citing rising fuel prices. Officials said it is part of the company's new quarterly fuel cost evaluations, after which fuel surcharges are adjusted up or down accordingly.

The new increase means shipping a car would cost $906.77, up from $898.99, Matson officials said. A 20 lb. bag of rice would be nearly a penny more.

"Record high fuel prices continue to be an area of concern for many businesses, as well as the average consumer," said Dave Hoppes, vice president, ocean services. "For transportation companies, fuel consumption is an unavoidable and significant component of operating costs. Many of the major railroads, trucking companies and international ocean carriers currently have fuel surcharges exceeding 14 percent.

"While we continue to invest in modern, fuel-efficient vessels that help reduce our overall fuel consumption, the impact of fuel prices on Matson's business remains a cost factor we cannot simply absorb. In the past three months, bunker fuel prices have risen 30 percent, necessitating this new adjustment."

Matson's fuel surcharge increased to 10.5 percent from 9.2 percent in April. The surcharge grew from 7.5 percent to 8 percent in March last year, increased to 8.8 percent in June, then reached 9.2 percent in October.

Crude oil for July delivery fell 74 cents, or 1.4 percent, to $53.54 a barrel on the New York Mercantile Exchange today. Oil is down $1.49, or 2.7 percent, for the week. Prices are up 39 percent from a year ago.