Matson announces Hawaii rate hike

   Matson said it will raise its rates for service between the U.S. mainland and Hawaii service by $175 per westbound container and $85 per eastbound container, effective Jan. 1.
   The increase will be filed with the U.S. Surface Transportation Board, which regulates domestic liner shipping companies.
   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 both the rate adjustment and terminal handling charge will result in shipping costs rising by an average of 5.6 percent. Historically, Matson said it announced average percentage increases based solely on the rate increase, excluding terminal handling charges. As of last year, it is now combining 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 of ocean services.
    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. Matson said the 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.” – Chris Dupin