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
Supplier Relationship Micro Management
Optimizing Across Six Guiding Principles
Download Today!
From the July 2017 Logistics Management Issue
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish demand and political doubt. The result: “cognitive dissonance” that finds a $1.4 trillion market scratching its head.
2017 Truckload Brokerage Roundtable: Technology continues to connect the dots
Cloud Transportation Management Systems (TMS): Weis Markets streamlines “both sides” of the DC door
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
28th Annual State of Logistics: Into the great unknown
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...