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Matson cuts fuel surcharge rate
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Posted on Sep 29 2011
By Clarissa V. David
Reporter
Reporter
Matson Navigation Co., one of the nation’s top logistics and transportation service providers, has reduced its fuel surcharge by three percentage points effective Sept. 25.
The company announced in a statement that it will cut fuel surcharge from 47 percent to 44 percent for its CNMI, Guam, and Micronesia service, and from 45.5 percent to 42.5 percent for its Hawaii service due to the recent drop in bunker fuel prices.
This is the second time that Matson has adjusted its fuel surcharge rate. Last Aug. 19, Matson announced that it will lower its fuel surcharge by two percentage points effective Aug. 28.
The two adjustments resulted to a total of five percentage points in fuel surcharge reduction.
Matson senior vice president for ocean services Dave Hoppes said in a statement that they are pleased to be able to pass along the second consecutive decrease, which represents a reduction in shipping costs ranging from $90 to $150 per container for most customers.
He said sustained high fuel prices have made this year “a very challenging year for many businesses.”
“Transportation companies have been particularly hard hit, with fuel consumption an unavoidable and significant component of operating costs,” Hoppes said. “In addition, the cost of bunker fuel, which is the type of fuel consumed by most ocean carriers, rose faster over the past year than crude oil and has been slower in experiencing any declines in prices. We are encouraged by the recent moderation of bunker fuel costs, allowing us to make this second decrease. Matson has made a practice of giving 30 days notice for upward rate adjustments, but as with previous decreases, we are passing on this downward adjustment to our customers as soon as possible. We will continue to monitor fuel costs and adjust the surcharge accordingly.”
Horizon Lines of Guam has yet to reflect Matson’s recent three-percentage point decrease.
Its last fuel adjustment factor decrease in Micronesia was effective Aug. 28, when it reduced its rate by two percentage points or from 49 percent to 47 percent.
