Posted at 5:00 p.m., Tuesday, November 13, 2007
Matson to raise shipping fuel surcharge to 29 percent
Advertiser Staff
Matson Navigation Co., the state's largest ocean cargo carrier, said yesterday it is adjusting a proposed fuel surcharge increase even higher because of rising fuel costs.In October, Matson said that it would raise the fuel surcharge from 24 percent to 26 percent effective Dec. 2. But with world oil prices hitting record levels, Matson said it will boost the surcharge at 29 percent and delay implementing it until Dec. 14.
The 5 percentage point hike is the largest single increase in at least eight years.
Matson spokesman Jeff Hull said the company postponed the original increase because it realized the 26 percent wouldn't have covered costs.
"Instead of hitting our customers twice with a 2 percent and having to follow up a few weeks later with a 3 percent, we're just going to do one at 5 percent on Dec. 14," Hull said.
The higher shipping costs will likely affect the prices Hawai'i residents pay for everyday goods. A 20-pound bag of rice, for example, will cost 3.9 cents more to ship and a head of lettuce nearly a penny more.
