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The Honolulu Advertiser
Updated at 11:34 a.m., Tuesday, November 25, 2008

Matson to raise basic shipping charge by average 3.9 percent

Advertiser Staff

Hawai'i consumers can expect to pay more for goods coming in on Matson Navigation Co. ships starting in January.

The state's largest shipper said today it will increase rates on Jan. 4 by $120 per westbound container and $60 per eastbound container. That's an average rate increase of 3.9 percent, the company said.

Matson also will raise its terminal handling charge by $175 per westbound container and $90 per eastbound container.

The basic rate and terminal handling charges are separate from a fuel surcharge Matson levies.

"This rate increase will help offset rises in operating costs and support ongoing investments in our Hawaii service," said Dave Hoppes, Matson's senior vice president for ocean services.

Matson's terminal handling charge was first implemented in 2003 and is designed to recover a portion of the extraordinary costs associated with the movement of cargo through terminals. This charge is standard in the industry and appears as a separate line item at the bottom of the company's freight bills.

"Terminal handling costs comprise approximately 40 percent of Matson's operating costs," said Hoppes. "Matson continues to absorb most of the costs associated with terminal operations, the majority of which are driven by factors that are outside of our control, but needs to pass on some of the increased expenses to our customers."