Matson Navigation Co., the state’s largest ocean shipper, is decreasing its fuel surcharge 2 percentage points for its mainland-Hawaii service due to a decline in bunker fuel prices.

The drop to 45.5 percent from an all-time high of 47.5 percent will go into effect Aug. 28 and follows four straight increases. The most recent rate increase was implemented on June 12.

Matson said Friday it also is lowering its fuel surcharge 2 percentage points to 47 percent from 49 percent for its mainland service to Guam, the Commonwealth of the Northern Mariana Islands and Micronesia, also effective Aug. 28.

The decreased fuel surcharge will represent cost savings of more than 4 percent.

"We are pleased to be able to pass this decrease along to our customers, which for the most part represents a reduction in shipping costs ranging from $60 to $105 per container," Dave Hoppes, Matson senior vice president, ocean services, said in a statement.

Matson ships use bunker fuel, and bunker fuel prices generally had been rising faster over the past year than crude oil, Hoppes said.

The company typically provides customers 30 days’ notice for increases, "but as with previous decreases, we are passing on this downward adjustment to our customers as soon as possible," Hoppes said.

Hawaii companies often pass on increases to customers to offset higher shipping costs. This time, Hawaii businesses could see a bit of relief after the decrease takes effect.

"We will make some adjustments," said Tish Uyehara, director of marketing for Honolulu-based Armstrong Produce Ltd. The company has tried to avoid passing on each recent fuel surcharge increase by looking "internally first … mak(ing) our operations a little more efficient, but when there are opportunities to give something back to the customers, that’s what we want to try and do," she said.

The first shipments on which the downward adjustment would apply likely would be in the first week of September, Uyehara said.

Other ocean shippers often follow Matson’s lead, but the fuel surcharge assessed for Hawaii service by Pasha Hawaii Transport Lines is at 43.5 percent, "still lower than what they currently announced with their reduction," said General Manager Reggie Maldonado. The Corte Madera, Calif.-based company is assessing its next move and might have an announcement Monday. Pasha did not follow Matson’s May announcement of a fuel surcharge increase.

Horizon Lines, based in Charlotte, N.C., could not be reached, but typically matches Matson.

GOING DOWN

The 2 percentage-point decrease in the Matson Navigation Co. fuel surcharge will lower the cost of shipping for Hawaii companies. Here are some examples.

12-ounce canned beverages
» $60 per 40-foot container
» 51,744 12-ounce canned beverages in a 40-foot container
» $60/51,744 = 0.12 cents per can (about one-tenth of a cent)

Lettuce
» $92 per 40-foot container
» 24,000 heads of lettuce per 40-foot container
» $92/24,000 = 0.38 cents per head of lettuce

Rice
» $44 per 40-foot container
» 2,280 20-pound bags of rice per 40-foot container
» $44/2,280 = 1.95 cents per 20-pound bag

Lumber (2×4)
» $34 per 40-foot flat rack
» 3,550 2x4s per 40-foot flat rack
» $34/3,550 = 0.96 cents per 2×4

Source: Matson Navigation Co.

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