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Matson hit
by import surge
The shipper's new containership
MV Maunawili will help cope with a
dock labor shortage on West Coast
Matson Navigation Co. threw a coming-out party yesterday and the honored guest was its new $110 million containership, the MV Maunawili.
But the 712-foot, diesel-powered vessel, which arrived at Pier 19 Sunday on its maiden voyage from Long Beach, Calif., to Honolulu, didn't stay long. It left again last night for the West Coast as Matson tries to keep pace with an ongoing dock labor shortage that has forced the company to enlist the new ship, which will take the place of another vessel in the company's mainland-Hawaii rotation.
Because of the shortage, ships typically have to wait two to three days to get labor before they can load and unload their cargo, among other problems, said Jim Andrasick, president and chief executive of Matson. Forcing an extra ship into service has increased the cost of Matson's vessel operations 10 percent.
He said a 15 percent year-over-year surge of imports from Asia, particularly China, has created the backlog. The Pacific Maritime Association, which represents shippers, and the International Longshore & Warehouse Union have been unable to meet demand for dockworkers despite an aggressive recruitment and training program that is resulting in 3,000 additional hirings.
"I wish we had a better fix of when it's over because the volume of cargo coming in has been amazingly high," Andrasick said. "Normally, in the international trade there's a peak and the peak occurs right about now. And we would expect things to trend downward, which would give us some relief because the fewer ships coming in, the less labor you need to unload them. But that doesn't seem to be happening."
He said that's because China has taken on a massive manufacturing effort and items that used to be made in the United States are now being made in that country. Add the upcoming holiday season to the mix, he said, and "we have not seen the worst of it."
High fuel prices, which have prompted Matson to keep an 8.8 percent fuel surcharge in place, also have been a concern.
But Andrasick said there's many reasons for the company to be optimistic as it looks ahead to the fourth quarter and to next year.
He said Hawaii's improving economy, fueled by tourism and the private and military housing industry, will benefit Matson. Andrasick also said the MV Maunawili, which is the sister ship of the MV Manukai that was put into service last October, will enhance customer service. The ships have the capacity to carry 2,600 containers and should service the state for the next 20 to 30 years, Andrasick said. The ships have been built with a special emphasis on accommodating a diversified mix of cargo.
In 2003, Andrasick said Matson's container volume rose by 6 percent and auto volume increased 20 percent. The volume is more modest this year, he said, but the upward trend is continuing.
Andrasick also said improved roll-on, roll-off service for auto customers and direct calls to neighbor islands also will help the company -- and state -- going forward.
"While the labor shortages in Southern California have posed service challenges for the past several months, Matson is otherwise very well positioned to meet the demands of a growing Hawaii economy," Andrasick said.
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