Matson Navigation Co., Hawai'i's largest shipping company, said yesterday it will lower its fuel surcharge to 37.5 percent on Sept. 21, the first decline in more than 1 1/2 years.

The drop from 42.25 percent reflects recent declines in bunker fuel prices, the company said. The rate applies to Matson's Hawai'i, Guam/Commonwealth of Northern Mariana Islands and Micronesia services.

"Matson is very pleased to finally have the opportunity to lower its fuel surcharge following an extended period of record high fuel-related costs in the world oil market," said Dave Hoppes, senior vice president of ocean services.

For most customers, the drop translates into a decrease in shipping costs ranging from $115 to $180 per container, he said.

"We are hopeful this current trend will continue, resulting in further decreases in the future," Hoppes added. He said the company will continue to monitor fuel costs and adjust the fuel surcharge accordingly.

The company sent a letter to customers yesterday announcing the decrease.

The company last raised the surcharge on Aug. 31 and last decreased it on Jan. 28, 2007.

Matson's main competitor, Horizon Lines, raised its fuel surcharge to 42.25 percent on Aug. 17 and has not made any changes since then.

About 80 percent of all goods sold in Hawai'i come via ship.