Matson Raising Fuel Surcharge 5% for Hawaii, Guam, CNMI and Micronesian Routes

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Guam – Guam’s only shipper, Matson, has announced a 5% increase in its fuel surcharge for all Guam, CNMI, Micronesian and Hawaii routes.

That means the fuel surcharge for the Guam, CNMI and Micronesian service will rise from 36.5% to 41.5% for its Guam, CNMI and Micronesia services. For Hawaii the surcharge goes from 34.5% to 39.5% .

The increase takes effect March 23.

A notice to customers from Matson’s Director of Public Relations, Jeff Hull,  states that the increase is the result of “high fuel prices and other energy related costs”.

Dave Hoppes, Matson’s Senior Vice President of Ocean Services is quoted in the statement as saying that “We are now seeing the impact of Emission Control Area (ECA) regulations that were implemented in 2012, which require carriers to burn the more costly low-sulfur distillate fuel 200 miles off U.S. coastlines.  For Matson, this has resulted in increased fuel costs for about 20% of each voyage, both westbound and eastbound..”

READ the announcement from Matson below:

February 19, 2014

Subject:  Matson Raising Fuel Surcharge for Hawaii, Guam/CNMI and Micronesia Services by 5 Percentage Points
Dear Matson Customer:

As a result of high fuel prices and other energy related costs, Matson is raising its fuel surcharge by 5 percentage points, from 34.5% to 39.5% for its Hawaii service, and from 36.5% to 41.5% for its Guam/CNMI and Micronesia services, effective March 23, 2014. The adjustment is the first increase Matson has taken since October 2012 and follows three consecutive decreases for the company’s Hawaii service, which totaled nine percentage points, and one decrease for Guam/CNMI and Micronesia of 3.5 percentage points.

“Since our last decrease in July 2013, Matson’s fuel costs have increased,” said Dave Hoppes, senior vice president, ocean services. “We are now seeing the impact of Emission Control Area (ECA) regulations that were implemented in 2012, which require carriers to burn the more costly low-sulfur distillate fuel 200 miles off U.S. coastlines.  For Matson, this has resulted in increased fuel costs for about 20% of each voyage, both westbound and eastbound.  As with all increases, Matson gives our customers 30 days advance notice prior to implementation. We will continue to monitor fuel prices and adjust the surcharge accordingly.”

If you have any questions, please contact your local account executive or our Customer Support Center.  Thank you for shipping with Matson.

Jeff Hull
Director, Public Relations
Matson