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Thursday, November 29, 2012
Matson to Hike Container Fees $225
By News Release @ 3:00 AM :: 4300 Views :: Energy, Environment

News Release from www.Matson.com

Matson has announced it will raise its rates for the company’s Hawaii service by $175 per westbound container and $85 per eastbound container, effective Jan. 1, 2013.
The increase will be filed with the Surface Transportation Board.
In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective Jan. 1.
Matson estimates the combined increase of the rate adjustment and terminal handling charge will result in shipping costs rising by an average of 5.6 percent.
Historically, Matson announced average percentage increases based solely on the rate increase, excluding terminal handling charges.
As of last year, it is now combing both numbers for the average percent increase in the interest of greater transparency.
“This rate increase will help offset rises in operating costs and support ongoing investments in our Hawaii service,” said Dave Hoppes, Senior Vice President, Ocean Services. “This rate adjustment is consistent with our longstanding philosophy of implementing modest, incremental increases as necessary to maintain the highest levels of service. Matson continues to diligently look for ways to operate the most efficient, cost effective service possible, without undercutting our standards of quality. In the past decade, Matson has invested nearly $1 billion in four new containerships, fleet enhancements, new container equipment, information technology and upgrades to its terminal facilities. Matson remains committed to continuing to make long term investments that will provide the state with a strong ocean transportation infrastructure.”
Matson’s terminal handling charge was first implemented in 2003 and is designed to recover a portion of the 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,” Hoppes said. “Matson continues to absorb a substantial amount of the expenses associated with terminal operations, the majority of which are driven by factors that are outside of our control.”
In addition, Matson announced it will not seek a general rate increase for the company’s Guam and Commonwealth of the Northern Marianas Islands service.
“Despite rising operating costs, Matson has decided to not seek a general rate increase for its Guam service in 2013,” Hoppes said. “We will, however, increase our terminal handling charge, as these costs are driven by factors outside our control and need to be passed on to our customers. Matson continues to absorb a substantial amount of the expenses associated with terminal operations.”
Matson will also not seek a general rate increase for its service to the Republic of Palau, the Federated States of Micronesia and the Republic of the Marshall Islands. The company will, however, raise its transshipment fee for these islands by $100 per container in order to recover costs associated with transshipment through the port of Guam, as well as increase its West Coast terminal handling charge by $50 per container, both effective Jan. 20, 2013.
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