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Matson to hike surcharge
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Posted on Jun 15 2008
Pointing to higher fuel costs, shipping company Matson Navigation Co. on Friday disclosed plans to hike its fuel surcharge for service to Saipan by 4.5 percentage points in a move that could increase costs at local stores dependent on off-island goods.
In a statement, Matson said the fuel surcharge will rise from 33.75 percent to 38.25 percent. The change will begin July 13.
“Escalating fuel prices have hit levels that are unprecedented and are adversely impacting virtually all businesses, as well as consumers,” said Dave Hoppes, senior vice president of ocean services for Matson. “For transportation companies, fuel related expenses are unavoidable.”
The last time Matson raised its fuel surcharge was on April 6.
Rising fuel costs linked to the climbing global price of oil have prompted a host of businesses on Saipan to increase costs or alter service in recent weeks. Continental Airlines, for example, said last week that it will end its direct service to Manila on July 16, citing a spike in jet fuel prices. Bottled water companies on the island are in the midst of a price increase connected to rising fuel costs. And a liquid petroleum company also recently boosted its prices.
Matson noted similar increases in the fuel surcharge for its service elsewhere in the Pacific, including Guam and Hawaii. The company also pointed to steps it has taken previously to cut back its fuel consumption in order to prevent a price hike, such as slowing the speed of container ships.
Matson’s fuel costs have risen 27 percent recently, the company said in its statement, adding that unless rising costs are tempered, it may be necessary to boost the surcharge again in the future.
Matson provides ocean transportation services to Hawaii, Guam, China and Micronesia, as well as logistics services through its subsidiary, Matson Integrated Logistics.
