Matson to raise fuel charge Oct. 7

Matson Inc. is poised to increase its fuel surcharge by 4.5 percentage points next month, which could add to the costs of goods consumers will eventually pay.

The state’s largest ocean carrier announced Friday that it will boost the fuel surcharge to 43.5 percent from 39 percent on Oct. 7 for its mainland-Hawaii service as a result of rising bunker fuel prices and other energy-related costs.

The fuel surcharge for Matson’s Guam, Commonwealth of the Northern Mariana Islands and Micronesia services will rise to 40 percent from 35.5 percent the same day.

The increase follows consecutive decreases totaling 6.5 percentage points in June and July.

"While we were encouraged by the moderation of bunker fuel prices earlier this year, that trend has been reversed in recent months," Dave Hoppes, Matson’s senior vice president for ocean services, said in a statement. "Since announcing our last decrease in mid-July, bunker fuel prices have risen over 13 percent. Energy-related expenses continue to be a significant cost factor for most businesses, as well as consumers, with transportation companies especially hard hit."

Horizon Lines Inc., the state’s second-largest ocean shipper, typically matches Matson but could not be reached for comment.

Pasha Hawaii Transport Lines, which began transporting containers in July between Hono­lulu, Maui, Hilo and San Diego to complement its auto-shipping business, said Friday it would raise its fuel surcharge but had not yet determined the increase.

Lauren Zirbel, executive director of the Hawaii Food Industry Association, which represents nearly 200 small and midsize companies, said businesses, particularly in the highly competitive food industry, will not be able to absorb shipping cost increases since they already operate on thin profit margins.

"We’ve seen a lot of increases in costs in the form of government fees and taxes, but we also have seen a constant increase on the shipping side," she said. "Both of those things are a large part of the reason it’s so expensive to purchase groceries in Hawaii. There’s only so much that businesses can absorb. They really have no choice but to pass increased costs to the consumer because they’re already operating on a bare minimum."

Kalihi resident Aukuso Pelefoti, 53, a single father of four children ages 7 to 13, said consumers really have no choice but to pay the higher costs because the state has limited alternatives.

"There’s really no getting around it. It’s like one of those things where (the market is) too small for a lot of competition," he said. "We consumers are at the mercy of the business owners. We don’t have much of a say. What are we going to do? It’s like a domino effect all the way around."

The family’s monthly food bill has risen to $480 from $400 six months ago.

"The food prices have been going up anyway," Pelefoti added. "Every two weeks I go to (the) store and there’s a new price."