Matson cuts fuel surcharge

Star-Bulletin staff

Responding to falling fuel prices, Matson Navigation Co. today announced a 0.5 percent reduction in its shipping surcharge on Hawaii and Micronesia routes.

The surcharge, currently 1.5 percent, will be dropped to 1 percent on March 15, the company said. Matson about three months ago cut its surcharge from 1.75 percent to 1.5 percent and put off its usual annual rate increase.

"We are encouraged by the current downward trend of fuel costs, as well as a greater stability in prices than what was experienced in 1996 and, to a lesser degree, in 1997," said Paul E. Stevens, senior vice president of marketing.

Matson began adding a fuel surcharge in mid-1996, citing escalating bunker fuel costs. The surcharge went from 1.1 percent to 1.75 percent that year.

Both Matson and its competitor Sea-Land Service Inc. earlier this year announced they would at least temporarily hold the line on shipping rates because of Hawaii's economic hard times.

It was not immediately known if Sea-Land would follow suit by trimming its fuel surcharge, which now is 1.5 percent.