Matson Inc. will lower its fuel surcharge for Hawaii cargo shipping by 5 percentage points Nov. 2 to compensate for falling ship fuel prices, the state’s largest ocean cargo carrier announced Thursday.
The decrease, which puts the surcharge at 37.5 percent, follows two increases earlier this year — 3 percentage points in June and 5 percentage points in March for shipments between the West Coast and Hawaii.
Dave Hoppes, Matson’s senior vice president of ocean services, said the reduction should save most customers $100 to $175 for shipping a container.
"We are pleased to be able to make this downward adjustment to our fuel surcharge,"he said in a statement. "We have been 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."
Bunker fuel is oil used to power ships.
Honolulu-based Matson also is lowering its fuel surcharge for its Guam/Commonwealth of the Northern Mariana Islands and Micronesia service by 5 percentage points to 38 percent.
Matson competitors Horizon Lines Inc. and Pasha Hawaii Transport Lines typically adjust their fuel surcharges similarly shortly following Matson changes.
The move by Matson follows recent decreases in gasoline prices triggered by falling oil prices.
According to a report in the trade publication Supply Chain Digest on Tuesday, bunker fuel prices have tumbled in step with oil price declines after a bit of a delay. Both commodities have fallen about 25 percent, the report said.
Matson’s 5 percentage point decrease equates to a 12 percent reduction in the fuel surcharge. However, Matson spokesman Jeff Hull said bunker fuel prices on the West Coast where the company buys its fuel have not fallen as much as the figure in the Supply Chain Digest report.
"In fact, over the past week, bunker fuel prices have been rising again," he said in an email.
SHIPPING OUT
Matson Inc. announced Thursday it was lowering its fuel surcharge:
| Nov. 2, 2014 |
37.5% |
| June 8, 2014 |
42.5% |
| March 23, 2014 |
39.5% |
| July 7, 2013 |
34.5% |
| April 28, 2013 |
36.5% |
| March 17, 2013 |
40% |
| Oct. 7, 2012 |
43.5% |
| July 15, 2012 |
39.0% |
| June 17, 2012 |
42.0% |
| Feb. 26, 2012 |
45.5% |
| Oct. 9, 2011 |
40.5% |
| Sept. 25, 2011 |
42.5% |
| Aug. 28, 2011 |
45.5% |
|
| June 12, 2011 |
47.5% |
| May 1, 2011 |
43.5% |
| March 27, 2011 |
35.0% |
| Feb. 27, 2011 |
26.5% |
| Source: Matson Inc. |
