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The Honolulu Advertiser
Updated at 3:02 p.m., Friday, March 7, 2008

Matson raises fuel surcharge to 33.75% effective April 6

By Robbie Dingeman
Advertiser Staff Writer

Matson Navigation Co., the biggest ocean cargo carrier to Hawai'i, will raise its fuel surcharge on April 6 to 33.75 percent, its highest level ever.

The shipping line today said the 2.25 percentage-point increase was needed because fuel costs have reached a "historical record highs." The rate applies to Matson's Hawai'i, Guam/Commonwealth of Northern Mariana Islands CNMI and Micronesia services.

The jump in the fuel surcharge comes as crude oil prices have hit $100 a barrel.

"Fuel related expenses remain a major cost component for Matson, as well as other transportation companies," said Dave Hoppes, senior vice president, ocean services.

"Since our last increase was announced in early January, fuel prices have continued to be adversely affected by unprecedented demands for oil in the world market," he said.

While the company recognizes the impact these increases have on customers and consumers in general, "fuel consumption is an unavoidable cost that touches virtually all aspects of our operations."

Hoppes said Matson will continue to monitor fuel prices and adjust the fuel surcharge accordingly. The company sent a letter to customers today announcing the hike.

The company last raised the surcharge on Feb. 4, when it increased the charge to 31.5 percent.

About 80 percent of all goods sold in Hawai'i come via ship, and the increased fuel prices will likely be reflected in the costs of those goods.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.