Matson raises rates, THCs to Hawaii
Matson Navigation Co. said Tuesday it will raise rates on its Hawaii service by $120 per westbound container and $60 per eastbound container, effective Jan. 3, a move that will hike rates by an average of 3.8 percent.
Meanwhile, Matson will also raise its terminal handling charge by $125 per westbound container and $60 per eastbound container, also effective Jan. 3.
'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, in a statement.
'While Matson recognizes this is a difficult time economically, this rate adjustment is consistent with our longstanding philosophy of implementing modest, incremental increases as necessary to maintain the highest level of service to our customers,' he added. 'Over the past several years, Matson has been diligently implementing cost reduction measures across-the-board, without undercutting the quality of its service. These initiatives have included workforce reductions and laying up two Matson vessels to ensure the company provides the most economical service possible.'
Matson said it has invested nearly $600 million in fleet enhancements, including more than $500 million for construction of four new containerships.
The 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.
'Terminal handling costs comprise over 40 percent of Matson's operating costs,' Hoppes said. 'Matson continues to absorb most of the costs associated with terminal operations, the majority of which are driven by factors that are outside of our control, but needs to pass on some of the expenses to our customers.'