Matson to raise rates and terminal charges next year

By Patrick Burnson, Executive Editor
November 25, 2013 - LM Editorial

Matson, Inc., a leading U.S. carrier in the Pacific, announced today that Matson Navigation Company, Inc. (Matson) will raise its rates for the company’s Hawaii service by $175 per westbound container and $85 per eastbound container, effective January 5, 2014.  The increase will be filed with the Surface Transportation Board.  In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective January 5, 2014.

Matson estimates that the combined increase of both the rate adjustment and terminal handling charge will result in shipping costs rising by an average of 5.5 percent.  Historically, Matson announced average percentage increases based solely on the rate increase, excluding terminal handling charges.  It now combines both numbers for the average percent increase in the interest of greater transparency.

“This rate increase will help offset rises in operating costs and support ongoing investments in our Hawaii service,” said Dave Hoppes, senior vice president, ocean services. “The adjustment is consistent with our longstanding philosophy of implementing modest, incremental increases as necessary to maintain the highest levels of service, and is identical to increases implemented in 2012 and 2013. Matson continues to diligently look for ways to operate the most efficient, cost effective service possible, without undercutting our standards of quality.”

Hoppes noted that In the past decade, the company has invested nearly $1 billion in four new containerships, fleet enhancements, new container equipment, information technology and upgrades to its terminal facilities.

As reported in LM, Matson announced that it has signed a contract to build two “Aloha Class” 3,600 TEU containerships for the company’s Hawaii service for an aggregate price of $418 million. 

“Matson remains committed to continuing to make long term investments that will provide the state with a modern, reliable ocean transportation infrastructure,” said Hoppes.

Matson’s terminal handling charge was first implemented in 2003 and is designed to recover a portion of the costs associated with the movement of cargo through terminals.  This charge is standard in the industry and appears as a separate line item at the bottom of the company’s freight bills.

“Terminal handling costs comprise approximately 40 percent of Matson’s operating costs,” said Hoppes.  “Matson continues to absorb a substantial amount of the expenses associated with terminal operations, the majority of which are driven by factors that are outside of our control.”



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

Information abounds about the growing trend of electric lift trucks and the advantages and disadvantages of the electric solution. Amid all of the information from so many sources, what's the truth about electric lift trucks? This complimentary white paper breaks through the clutter to review why electric lift trucks are gaining in popularity and also to review their challenges, as well as their economic and environmental benefits.

Three weeks after initiating a coordinated series of slowdowns that have mired the major West Coast ports of Tacoma, Seattle, Oakland, Los Angeles and Long Beach, the ILWU has pushed away from the bargaining table.

DHL has released the third edition of its Global Connectedness Index (GCI), a detailed analysis of the state of globalization around the world.

The truck driver shortage is worsening, threatening the trucking industry’s ability to serve the nation’s supply chains. The shortage will almost certainly cause fleets’ costs to increase and shippers’ rate to continue to rise.

The Agriculture Transportation Coalition has asked the Administration to bring in a federal mediator to help resolve the negotiations, and if a strike or lockout occurs, the AgTC advocates the rarely-invoked Taft-Hartley Act.

Article Topics

News · Ocean Freight · Shipping · Ocean Shipping · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

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