Matson Inc. is heralding what it expects to be a giant first-quarter profit.
The Honolulu-based ocean cargo transportation firm announced Thursday that it expects to earn between $80 million and
$85 million from January-March operations.
This anticipated net income for three months is around what Matson earned during all of 2019 — $83 million — before the coronavirus pandemic.
Matson’s release of “preliminary” financial results for Hawaii’s largest cargo carrier has become a trend since July as impacts from the pandemic were devastating many industries in the state, including retailers, restaurants and a host of tourism-based enterprises.
However, Matson has been capitalizing on one upside of the COVID-19 virus: extra demand for cargo shipped from China to the mainland.
In the first quarter of last year, before much of any impact from COVID-19 washed over the state, Matson earned $4 million.
Matson’s full-year profit in 2020 was $193 million.
The company said its cargo volume from China rose by 219% in the recent three months ending March 31 from the same period last year.
“Matson is off to a strong start to 2021,” Matt Cox, Matson chairman and CEO, said in a statement.
Matson, which has served China for about 15 years, began broadening its service there in May using chartered ships that now run weekly and command premium cargo rates driven by strong customer demand for goods including personal protective equipment,
cleaning products, home
improvement supplies,
electronics for working
from home and many
e-commerce goods.
The company ended up leasing six ships for its
enhanced China service, and in August added stops in Alaska to pick up seafood for delivery in Asia as a way to make more money on the return trip to China.
In Hawaii, Matson’s cargo volume edged up 0.6% in the first quarter.
In Matson’s two other major markets, volume was down 5% in Alaska and up 2% in Guam.
Cox said the significant demand for goods from China is expected to continue into late October, though he noted there is significant supply chain congestion at California ports.
Matson plans to release exact financial results for the first quarter on April 27.
