Matson stays within itself

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.

By ·

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

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 [email protected]

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!

Latest Whitepaper
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....