Matson Inc. posted strong results from its China and Alaska operations as its earnings more than doubled, but the state’s largest ocean cargo transportation company cautioned that freight rates may have peaked for now.

“At this time, we expect an orderly marketplace for the remainder of the year with our vessels continuing to operate at or near capacity, and earning a significant rate premium to the market and well above pre-pandemic rate levels,” Matson Chairman and CEO Matt Cox said today on a conference call with analysts. We continue to expect to operate the CCX (China California Express) service through the October peak season this year.”

China container volume jumped 11.7% as a result of four more eastbound voyages than the prior year.

“Within ocean transportation, our China service continued to see significant demand for its expedited ocean services as volume for e-commerce, garments and other goods remained elevated,” Cox said.

Alaska container volume increased 12.2% primarily due to higher retail-related demand, additional sailing and higher volume from the company’s Alaska-Asia Express.

But Cox said Matson saw softer volumes in Hawaii and Guam, primarily due to retail-related demand, and that the softness continued in July. Hawaii container volume decreased 1.5% while Guam volume was down 7%.

Matson said in the near term it expects the continued economic recovery in Hawaii due to the improving unemployment rate and increasing tourism, but that negative trends from a combination of economic effects create uncertainty in the state’s economic growth trajectory. Those trends include weakening economic conditions in the U.S. and global economies and lower household discretionary income as a result of high inflation, higher interest rates and the end of the pandemic-era stimulus helping personal income.

Matson’s net income more than doubled to $380.7 million, or $9.49 a share, from $162.5 million, or $3.71 a share, in the year-earlier quarter.

Revenue jumped 44.1% to $1.26 billion from $874.9 million. The company’s ocean transportation revenue soared 53.6% to $1.05 billion from $682.9 million while its logistics division revenue increased 10.4% to $211.9 million from $192 million.

“In logistics, operating income increased year-over-year with strength across all of the business lines as we continued to see favorable supply and demand fundamentals in our core markets,” Cox said.

Ocean transportation operating income more than doubled to $470 million from $201 million in the year-earlier quarter while logistics operating income jumped 79.1% to $23.1 million from $12.9 million.

Matson’s stock fell 41 cents to $91.26 after the earnings were announced.

Last month, the company’s stock had its longest winning streak in 25 years when it rose 10 consecutive days for its longest such streak since 1997. The shares gained 24.4% during last month’s run. Matson’s stock is now up 1.4% for the year.

Matson also announced in June that it was increasing its dividend by a penny to 31 cents a share. It will be payable on Sept. 1 to all shareholders of record as of the close of business on Thursday.

EARNINGS

Second-quarter net

$380.7 million

Year-earlier net

$162.5 million