Every year for more than a decade, the price to ship goods to Hawaii on the dominant ocean cargo carrier serving the state has gone up. Next year will be no different.
Matson Inc. announced Tuesday that it will cost $225 more to send a container to Hawaii from the West Coast effective Jan. 3. To send a container to the mainland from the islands will cost $110 more.
The increase, which equates to almost 5 percent for the majority of Matson’s customers, is about twice as much as the expected inflation rate for the state.
The state Department of Business, Economic Development and Tourism projects that inflation in Hawaii will rise 2.3 percent next year after an estimated 1 percent rise this year.
Matson said its rate increase is designed to offset rising operational costs and investments in equipment that includes two new ships to be delivered in 2018 at a cost of $418 million.
“Matson remains committed to investing in our service to ensure that Hawaii continues to have a modern, reliable and efficient ocean transportation infrastructure,” John Lauer, the company’s senior vice president of ocean services, said in a statement.
The company said its investments in recent years have totaled nearly $1 billion for new ships and containers as well as improvements to its harbor terminal, information technology system and other things.
The extra cost per container breaks down to pennies for many goods — about 10 cents more to ship a 20-pound bag of rice, 1 cent more for a head of lettuce and 3 cents more for a six-pack of canned beverages.
Next year will represent a fifth straight year that Matson has implemented similar rate increases for westbound shipping. The increase that took effect this year was identical in dollar amount, representing a 5.4 percent increase for most customers. From 2012 to 2014 Matson hiked its basic rate by $175 and also added $50 to its terminal handling charge for a combined $225 increase.
Matson does not need approval for rate increases, but files them with the U.S. Surface Transportation Board.
Typically, Matson’s competition implements similar increases. Until last year Matson had two main rivals: Horizon Lines and Pasha Hawaii Transport Lines. California-based Pasha acquired Horizon’s operations in Hawaii last year.
Honolulu-based Matson handles about two-thirds of all goods shipped to Hawaii. It is estimated that 80 percent of what is consumed in the state is imported, and 98 percent of that comes by sea.
