Subscribe to our free, weekly email newsletter!



Matson stays within itself

By Patrick Burnson, Executive Editor
August 16, 2013

The ocean cargo business had been often referred to as a “dysfunctional family,” with most of the members demonstrating some kind of self-destruction associated with mismanaged capacity. But one modest-sized carrier is proving the exception to bad behavior, giving both shippers and shareholders reason to rejoice.

Matson, Inc. had another solid quarter, driven by continuing strength in its Hawaii trade, modest volume gains in its other trade lanes and a better result in Logistics. And while most “mega” carriers lost money this year, this specialized one found a way to make some.

For the first six months of 2013, Matson reported net income of $29.2 million, or $0.68 per diluted share compared with $11.2 million or $0.26 per diluted share in 2012. Consolidated revenue for the first six months of 2013 was $811.3 million, compared with $760.3 million in 2012.

Granted, the company’s terminal operations joint venture – SSAT – continues to be negatively impacted by significantly reduced lift volume due to shipper losses from prior years. But Matson expects that SSAT will operate at a breakeven level for the year.

And there’s more good news.

In addition to the trade lane and terminal operations outlook, the company expects to continue to benefit from working with its existing fleet of less than ten vessels.

While other carriers introduce tonnage in struggling trade lanes, Matson remains focused on transportation costs and staying within itself, thereby keeping a lighter dry-dock schedule as compared to 2012.

Well done.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

Read how others are using Business Process Management to achieve ERP success with Microsoft Dynamics AX. Download the free white paper now.

Now that Congress has issued another highway funding Band-Aid – a $10.9 billion highway bill through next May that former Transportation Secretary Ray LaHood blasted as “totally inadequate” – what can we expect as the infamously do-nothing 113th Congress winds down in the next month before taking yet another recess to prep for the mid-term elections?

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

Article Topics

Blogs · Ocean Cargo · Logistics · Transportation · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA