Matson Inc., the state’s largest ocean cargo transportation firm, is following the recent plunge in oil prices with a plunge of its own by reducing its fuel surcharge by a record amount.
Honolulu-based Matson announced Thursday that it will reduce the charge by 7 percentage points — to 24.5 percent from 31.5 percent — effective Sunday in response to falling bunker fuel prices.
The move, Matson said, should save most customers $140 to $245 per container.
HISTORY OF CHANGES
Matson Inc. announced Thursday it was lowering its fuel surcharge, which marks the fourth time since November:
| Date |
Surcharge |
| Feb. 15, 2015 |
24.5% |
| Jan. 18 |
31.5% |
| Dec. 21, 2014 |
35.5% |
| Nov. 2 |
37.5% |
| June 8 |
42.5% |
| March 23 |
39.5% |
| July 7, 2013 |
34.5% |
| April 28 |
36.5% |
| March 17 |
40% |
| Oct. 7, 2012 |
43.5% |
| July 15 |
39.0% |
| June 17 |
42.0% |
| Feb. 26 |
45.5% |
Source: Matson Inc.
|
"We are pleased to be able to make another downward adjustment to our fuel surcharge," Dave Hoppes, Matson senior vice president for ocean services, said in a statement.
The upcoming decrease represents the biggest single reduction since Matson instituted the surcharge in 1999. The last time the surcharge was lower was in September 2010 when it was 21.75 percent.
Matson has reduced its fuel surcharge four times by a total of 18 percentage points since November. That reduction has shaved $360 to $630 off the cost to move a container from the West Coast to Hawaii.
However, the surcharge reductions are offset somewhat by a 5.4 percent general rate increase that Matson implemented Jan. 4. That increase amounted to an extra $225 for shipping a westbound container and $110 per eastbound container.
Shipping personal automobiles also is not affected by the fuel surcharge change, as this type of cargo is priced differently for competitive reasons.
Matson said its practice is to give 30 days’ advance notice for fuel surcharge increases but aims to pass along lower fuel costs to customers as soon as possible.
Fuel surcharge decreases by Matson have not been in step with reductions in prices for crude oil and gasoline, in part because fuel that powers ships is different than those other commodities.
Benchmark oil prices have fallen about 50 percent since July. Gasoline prices over the last 12 months on the mainland have fallen 38 percent and 18 percent in Hawaii.
Container ships are powered by bunker fuel, a heavy oil refined from crude oil. Matson buys its bunker fuel on the West Coast.
Hoppes said the company will continue to monitor fuel costs and adjust the surcharge accordingly. "We continue to be encouraged by the recent moderation in bunker fuel prices, and remain focused on diligently exploring ways in which we can maximize fuel efficiency for our fleet," he said in the statement.
Matson competitors Horizon Lines Inc. and Pasha Hawaii Transport Lines typically adjust their fuel surcharges similarly shortly following Matson changes.
Along with the Hawaii fuel surcharge change, Matson will lower its fuel surcharge for its Guam and Commonwealth of the Northern Mariana Islands service to 25 percent from 32 percent, and for Micronesia service to 30 percent from 37 percent.
