Matson raising Hawaii rates and THCs
Matson said Tuesday it was raising its rates for the company's Hawaii service by $120 per westbound container and $60 per eastbound container, effective Jan. 4, an average hike of 3.9 percent.
The Jones Act carrier said it would raise its terminal handling charge by $175 per westbound container and $90 per eastbound container on the same date. All the proposed rate increases are to be filed with the Surface Transportation Board.
'This rate increase will help offset rises in operating costs and support ongoing investments in our Hawaii service,' Dave Hoppes, senior vice president, ocean services, said in a statement. 'This rate adjustment is consistent with our longstanding philosophy of implementing modest, incremental increases as necessary.'
As for the THCs, which Matson first began charging in 2003, Hoppes said it was a vital way for carriers to recover cost.
'Terminal handling costs comprise approximately 40 percent of Matson's operating costs,' he 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 increased expenses to our customers.'