Matson – HNL Service Rate Hike

November 13, 2005 by Splatty  
Filed under Seafreight

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In support of Swizstick’s post on rising container rates, Matson line has announced a price increase for it’s Hawaii service beginning January 1, 2006. The average rate hike will be $125.00 per westbound container and $75.00 per eastbound container. Matson will also increase it’s terminal handling charge (THC) to $60 for westbound containers and $30 for eastbound containers. Reasons for the increase include increasing fuel costs and overall operating costs.

The rate increase will help offset rises in contractual operating costs and support a number of investments in Matson’s Hawaii service, said James Andrasick, president and chief executive officer of Oakland, Calif.-based Matson, a subsidiary of Alexander & Baldwin Inc. of Honolulu.

“Given the essential role ocean transportation has in supporting the state’s economic activities, Matson has made its fleet replacement program a top priority in recent years,” Andrasick said.

“Since 2002, Matson has invested over $500 million in new container ships that will serve Hawaii, as well as Guam and China,” he said.

With their more fuel-efficient diesel engines, the new vessels will provide Hawaii with efficient, dependable ocean transportation services for decades to come, Andrasick said.

The rate increase is consistent with Matson’s “long-standing philosophy of implementing modest, incremental increases annually in order to continue to reinvest in our Hawaii service,” he said.

Matson said it uses the terminal handling charge to recover a port of its terminal handling costs, which comprise about 40 percent of its total operating expenses.

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