Matson to raise Hawaii rates in January
Matson Navigation Co., Inc. will raise its rates for the company’s U.S. mainland/Hawaii service by $125 per westbound container and $60 per eastbound container, effective Jan. 11.
The company also annnounced that it is changing from a system of percentage increases in rates to one of a flat increase per container.
The increase will be filed with the U.S. Surface Transportation Board.
In addition, the company will increase its terminal handling charge by $25 per westbound container, to $225, and $15 per eastbound container, to $115. Rates for vehicles will increase $25, both westbound and eastbound.
“This rate increase will help offset rises in contractual operating costs and support a number of investments in our Hawaii service,” said James Andrasick, Matson president and chief executive officer.
“This rate increase is consistent with our long-standing philosophy of implementing modest, incremental increases as necessary,” he added. Andrasick further noted that international container rates in the Pacific have risen by $700 per container during the past 12 months.
Matson’s last rate increase was 2.9 percent and was implemented in April 2002. No general rate increase was implemented in 2003, the company said.
Historically, Matson has taken across-the-board percent rate increases. The flat fee per container rate increase recognizes that increases in costs and investments tend to be on a per container basis regardless of the commodity that is in a container. Percent increases result in customers shipping higher-rated commodities having to bear the greatest cost burdens, Matson said
The carrier estimates that this increase will raise rates by an average of 4.4 percent.
Matson said that its investments in the Hawaii service include two new containerships, built in the U.S. at a total cost of $220 million, as well as $90 million in enhancements to the company’s roll-on/roll-off service, terminal improvements, new container equipment, and enhanced security measures.