First-quarter profit at Matson Inc. tumbled 61 percent as the largest ocean cargo transportation company serving the state absorbed higher fuel prices and experienced small cargo volume declines in Hawaii, Alaska and Guam.

Honolulu-based Matson reported earnings of $7 million, or 16 cents per share, in the January-March period, down from $18.1 million, or 41 cents per share, in the same quarter last year.

The biggest factor in Matson’s lower profit was the timing of fuel cost increases and customer surcharge collections, the company said. Prices for bunker fuel powering Matson ships have gone up since late last year and the company recoups the higher costs through customers after a lag because it gives a 30-day notice to customers before raising its fuel surcharge.

Since late last year, Matson has implemented four fuel surcharge increases, the last of which took effect in April.

In its Hawaii service, Matson handled 6 percent fewer containers — 36,400 in the recent quarter compared with 38,500 a year earlier. The company said this drop was the result of an unexpected boost last year going away this year. The boost last year was from competitor Pasha Hawaii having to reconfigure its service after a ship breakdown.

Matson also carried 20 percent fewer automobiles in its Hawaii service — 13,800 vehicles in the recent quarter compared with 17,300 a year earlier.

In other markets, cargo volume dropped 4 percent in Alaska and 7 percent in Guam

One bright spot for Matson in the first quarter was China, where container volume rose 23 percent due to stronger customer demand and one more ship sailing in the recent quarter compared with a year earlier. Matson said its average rates for its China service also were higher.