Matson to increase fuel surcharge
Just weeks after its last hike went into effect, Matson increases fees -- again
Just weeks after its last hike went into effect, Matson Navigation Co. is increasing its fuel surcharge to 22.5 percent effective May 27.
It will be the highest surcharge Matson has applied since it first broke out the fuel levy in 1999.
In a statement to customers yesterday, Matson cited higher fuel prices for its ships and other energy-related costs as reasons for the increase.
On May 6, Matson raised its fuel surcharge 1.25 percentage points to 20.75 percent to match the rates of rivals Horizon Lines and Pasha Hawaii.
Its surcharges have been on the rise since the beginning of the year, when rates were at 17.5 percent.
The rate increase also applies to service to Guam and the Northern Mariana Islands.
Matson Navigation Co. told customers yesterday that it is raising its fuel surcharge on Hawaii-mainland shipping by 1.75 percentage points to a record 22.5 percent, effective May 27.
The latest increase comes only three weeks after Matson's recent hike to 20.75 percent, which went into effect on May 6.
It will be the highest such levy by Matson since it began applying fuel surcharges in October 1999.
The previous high was set last June, when Matson raised the surcharge to 21.25 percent from 18.5 percent.
Since the start of the year, the fuel surcharges have been on an incline. In March, Matson hiked its prices to 19.5 percent, up from 17.5 percent in January.
Matson cited higher bunker fuel prices and other energy-related costs as reasons for the increase.
"While Matson experienced steady declines in fuel prices in late 2006 and early 2007, allowing us to make three consecutive downward adjustments, current trends have been on the rise again, returning to near record-high levels," said Dave Hoppes, senior vice president of ocean services.
Matson's May 6 hike of 1.25 percentage points to 20.75 percent followed the lead of rivals Horizon Lines and Pasha Hawaii, which said in April that they would raise their fuel surcharge rates to 20.75 percent beginning May 6.
"Fuel consumption is an unavoidable and significant component of our operating costs, with every dollar increase per barrel adding over $2 million in annual expenses," continued Hoppes. "We will continue to monitor fuel costs and adjust the fuel surcharge accordingly."
The rate increase also applies to service to Guam and the Northern Mariana Islands.
Horizon Lines and Pasha Hawaii declined to comment yesterday on Matson's new rates.
