Honolulu Star-Bulletin Business
Sea-Land to hike
shipping rates

The company matches Matson’s increase
with a few caveats

Star-Bulletin staff

Sea-Land Service Inc. said it will raise its West Coast-Hawaii freight charges 3.5 percent to match a rate increase announced earlier this month by competitor Matson Navigation Co.

But Sea-Land also said yesterday that for intermodel shipping of items between Honolulu and inland Mainland cities, the rate increase will be 3 percent. Matson did not make that distinction.

Sea-Land's rates take effect Feb. 9. Neither company needs prior approval for the increases.

Sea-Land said 44 goods will be exempt from the rate increases, including automobiles to dealers, rental car fleets, personally owned vehicles, hospital supplies and many products made in Hawaii.

The company said the higher shipping rates are due to increased labor costs that it will have to pay in the first year of a three-year labor contract signed with West Coast dockworkers. The company also said it is facing increased costs for equipment and terminal facilities. But Sea-Land added that recent productivity improvements made it possible to exempt the 44 items from the increase.

Earlier this month, Matson said it was going to raise shipping rates across-the-board by 3.5 percent on Feb. 2. Matson, a unit of Alexander & Baldwin Inc., said it is raising shipping rates due to higher labor costs and to cover improvements to its operations.




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