Matson Decreases Fuel Surcharge

Matson Inc. has announced that it will reduce its fuel surcharge from 35.5 percent to 31.5 percent due to the fact that fuel prices have continued to drop. The most recent reduction will go into effect on January 18, 2015, a little less than a month from the last price reduction of 2 percentage points on December 21, 2014. Dave Hopes, Matson's senior vice president for ocean services, stated, "We are pleased to be able to make another downward adjustment to our fuel surcharge, which for most customers represents a reduction in shipping costs ranging from $80 to $140 per container. With this latest reduction, our fuel surcharge for those services will have dropped 11 percentage points since Nov. 2. We continue to be 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."

Source: Honolulu Star Advertiser, 1-13-2015, www.staradvertiser.com
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Matson Announces Additional Reduction of Fuel Surcharge

Matson Inc. has announced that they will be reducing their fuel surcharge by 2 percentage points to 35.5 percent thanks to a recent decline in bunker fuel prices.  The price change will take effect on December 21, 2014 and will mark the second consecutive decrease in less than two months. Dave Hoppes, Matson's senior vice president of Ocean Services, stated, "We are pleased to be able to make this downward adjustment to our fuel surcharge, which for most customers represents a reduction in shipping costs ranging from $40 to $70 per container. 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."

Source: Honolulu Star Advertiser, 12-16-2014, www.staradvertiser.com
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Horizon Lines LLC to Sell Hawaii Operations to The Pasha Group

Horizon Lines, LLC, the second largest ocean cargo carrier which serves the Hawaiian Islands, has announced that it will be selling its Hawaii operations component to The Pasha Group for $141.5 million.  Assuming that the transaction meets regulatory approval, this will mean that Matson Inc. and The Pasha Group will be the only two domestic shipping companies to serve the state after Horizon departs. Leroy Laney, a professor of economics and finance at Hawaii Pacific University, expressed some concern about this and commented, "This is going to eliminate one competitor. It's a small one but it's one competitor. It further concentrates what is a concentrated market to begin with."  Laney noted that Mason will control just over 70 percent of the domestic shipping market share and Pasha, with the acquisition of Horizon, would control the rest.

Source: Honolulu Star Advertiser, 11-12-2014, www.staradvertiser.com
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Matson to Lower Fuel Surcharge by 5 Percentage Points

Matson Inc. has announced that they will be lowering its fuel surcharge by 5 percentage points on November 2 due to falling ship fuel prices.  The state's largest ocean cargo carrier stated that the decrease will put the surcharge at 37.5 percent and will save customers between $100 to $175 for every container that they ship. Dave Hoppes, the senior vice president of ocean services for Matson, stated, "We are pleased to be able to make this downward adjustment to our fuel surcharge. 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."

Source: Honolulu Star Advertiser, 10-24-2014, www.staradvertiser.com
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Matson to Raise Their Fuel Surcharge

Matson Inc., has announced that they will be raising their fuel surcharge to 42.5 percent effective on June 8, 2014, in order to cover the costs of higher fuel prices.  This is an increase of 3 percentage points and is the second rate hike in the past three months.  Senior Vice President for Ocean Services, Dave Hoppes, stated, "Since announcing our last increase, which became effective March 23, 2014, Matson's fuel costs have continued to rise. A major contributor to our increase in fuel consumption has been a number of additional vessel sailings necessary to meet the service requirements of our customers."

Matson is the state's largest ocean shipping company, and many residents are concerned that this increase will mean higher costs for goods and food items.

Source: Honolulu Star Advertiser, 5-9-2014, www.staradvertiser.com
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Young Bros Interisland Shipping Volume Increases by 1.5 Percent in 2013

Young Bros. Ltd. the main interisland shipping company for the state of Hawaii, announced that they saw a 1.5 percent increase in shipping volume in 2013.  Per harbor, Kahului (Maui) saw a 1 percent gain, Hilo (Big Island of Hawaii) saw a 2.1 percent gain, Nawiliwili (Kauai) saw a 4.5 percent gain, Kaunakakai (Molokai) saw a 7.2 percent gain, and Kaumalapau (Lanai) saw a 20.7 percent gain.  The only harbor that saw a decline in shipping volume was Kawaihae harbor (Big Island of Hawaii) with a decrease of 4.7 percent.  Glenn Hong, president of the company, stated, "We turned the corner in 2013, but we still have a long way to go relative to the boom period we experienced during the middle of last decade.  Cargo volumes started coming back in the second quarter last year and maintained relative strength to finish 2013 with some growth. We recognize that various economic reports have been mixed of late but we're hopeful that there is enough fuel in the economy to continue to drive increasing cargo volumes in 2014."

Source: Honolulu Star Advertiser, 2-20-2014, www.staradvertiser.com
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Matson Shipping Costs to Increase in 2014

Matson Inc. has announced that they will be forced to increase the cost to ship a container to Hawaii by approximately $225 starting January 5, 2014. Items leaving the state going westbound will see an increase of approximately $110 per container.  Dan Hoppes, the senior vice-president of ocean services, stated, "Matson remains committed to continuing to make long-term investments that will provide the state with a modern, reliable ocean transportation infrastructure. Matson continues to diligently look for ways to operate the most efficient, cost-effective service possible, without undercutting our standards of quality."

Source: Honolulu Star Advertiser, 11-26-2013, www.staradvertiser.com
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Matson Inc Reports Strong Earnings in Second Quarter of 2013

The state of Hawaii's largest ocean transportation company, Matson Inc., has announced strong earnings in the second quarter of 2013.  The company reported a $20.1 million profit during the second quarter, more then double $7.8 million reported during the same quarter a year prior.  President and CEO of Matson, Matt Cox, stated, "Hawaii continues to see high levels of visitor arrivals, which in turn drives lower unemployment.  A key volume catalyst for us is construction activity. We look at the forecast uptick in permitting and hiring as positive signs moving forward.  These volume gains were similar to the gains we had during the first quarter of the year, and while we are encouraged by the increase in activity in the first half, we still think it's too early to say that the Hawaii recovery is complete.  Looking to the balance of the year, we continue to expect moderate volume gains for the Hawaii trade in line with general improvement in the Hawaii economy."

Source: Honolulu Star Advertiser, 8-8-2013, www.staradvertiser.com
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Credit and Debit Card Transactions Increase By 8.4 Percent in Second Quarter of 2013

According to a report issued by First Hawaiian Bank, credit and debit card transactions increased by 8.4 percent during the second quarter of 2013.  The state's largest bank notes that an improving construction industry and strong visitor arrivals have definitely helped with consumer spending.  President and CEO of First Hawaiian Bank, Bob Harrison, commented, "It's really encouraging seeing not only growth in the consumer numbers, but also seeing good starts on the construction side as well.  Consumers are still holding up their end, and it's looking like construction is coming on strong as well.  My hope is that this same trend continues and we continue to see solid single-digit or double-digit growth.  If we can continue to see that type of growth for the rest of 2013, that would be very, very good news."

In related news, Matson Inc., the state's largest ocean shipping company, has noted that there has been an upward trend in both containers and automobiles.  Chief Financial Officer for Matson Inc., Joel Wine, stated, "We think things have bottomed, and although we don't know what that slope of increase is going to look like, it feels like we're headed in the right direction.  We've stabilized, and we're still in the early innings of a recovery."  Wine added that the exact second quarter numbers will be released shortly in an official public statement.

Source: Honolulu Star Advertiser, 7-14-2013, www.staradvertiser.com
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Inter-island Shipping Down 3.9 Percent in First Quarter of 2013

According to a report released by Young Brothers Ltd., the main inter-island shipping company in the state of Hawaii, cargo shipments between Honolulu and the six neighbor island ports decreased by 3.9 percent during the first quarter of 2013 as compared to the same period a year ago. Shipments decreased by 12.3 percent to Kawaihae Harbor on the Big Island of Hawaii, by 6 percent at Hilo Harbor also on the Big Island, and by 5.8 percent on Kahului Harbor on Maui. Increases were seen at Nawiliwili Harbor on Kauai (3.1 percent), Kaunakakai Harbor on Molokai (2.2 percent) and Kaumalapau Harbor on Lanai at 28.5 percent. President of Young Brothers, Glenn Hong stated, “It’s disappointing to start the year with a decline. Nevertheless, it’s a continuation of the volatility we’ve experienced in quarterly comparisons of intrastate cargo volumes over the last few years. The trend has been sideways — a slight up quarter followed by a dip. We believe that some local businesses, particularly those on the neighbor islands, are still being very cautious.”

Source: Honolulu Star Advertiser, 5-24-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Hawaii Economy – Matson To Decrease Fuel Surcharge

Matson Inc., Hawaii’s largest ocean cargo transportation company, has announced that they will be decreasing their fuel surcharges by 3.5 percentage points to 40 percent. According to Matson officials, this decrease is due to a drop in bunker fuel prices. Senior Vice President of Ocean Services, Dave Hoppes, stated, “We are pleased to make this downward adjustment to our fuel surcharge. 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 Hawaii and Guam services.”

Horizon Lines Inc. the second largest ocean carrier, has not announced if they will follow Matson’s lead and decrease their fuel surcharges. Pasha Hawaii Transport Lines, which handles inter-island shipping has stated that they will be reducing their fuel charges and will make an official announcement shortly.

Source: Matson Navigation Company

Feb. 26, 2012 45.5% Fuel Surcharge
June 17, 2012 42.0% Fuel Surcharge
July 15, 2012 39.0% Fuel Surcharge
Oct. 7, 2012 43.5% Fuel Surcharge
March 17, 2013 40.0% Fuel Surcharge

Source: Honolulu Star Advertiser, 3-13-2013, www.staradvertiser.com
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Hawaii Gas to Ship Liquified Natural Gas to Islands

After a ruling made by the Federal Energy Regulatory Commission stating that federal authorization is not needed, Hawaii Gas has announced that they will be shipping limited amounts of liquified natural gas to the islands within the next two months. Company president and CEO, Jeff Kissel commented, “This ruling is hugely positive. We still have to get state and local authorities comfortable with the plan, but we hope to have the first shipments here in 60 days.” Initially, the natural gas would be sold to residential and commercial customers. However, Hawaii Gas hopes to eventually have larger tanker ships bring enough natural gas to replace oil for electricity generation.

Source: Honolulu Star Advertiser, 1-18-2013, www.staradvertiser.com
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Matson Shipping Company to Raise Rates in 2013

Matson Inc., the state’s largest ocean cargo transportation firm, has announced that the cost to ship goods to and from Hawaii will rise starting on January 1, 2013. Westbound containers would cost an additional $175 while eastbound containers would cost an additional $85. In addition, a separate terminal handing fee will be added at $50 per westbound container and $25 per eastbound container. All in all, these two fees would mean that shipping costs would increase by approximately 5.6 percent.

According to Matson, the rate increases are needed to offset higher operating costs. Senior Vice President of Ocean Services, Dave Hoppes, stated, “Matson continues to diligently look for ways to operate the most efficient, cost effective service possible, without undercutting our standards of quality. Matson continues to absorb a substantial amount of the expenses associated with terminal operations, the majority of which are driven by factors that are outside of our control.”

Source: Honolulu Star Advertiser, 11-29-2012, www.staradvertiser.com
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Matson Navigation Company Plans to Buy Two More Ships

Matson Navigation Company has announced that it would like to purchase two additional ships for its fleet in the next couple of years, at an estimated cost of $400 million total.  Matson, which based out of Honolulu, is Hawaii’s largest ocean cargo transportation firm and controls approximately 66 of the state’s market share.  The last time Matson purchased any new vessels was over 10 years ago.  Kevin Sterling, a stock analyst with BB&T Capital Markets, believes it is a smart move by Matson, as newer ships are larger, quicker and most importantly more fuel efficient.  Sterling stated, “It makes sense to keep your fleet young.  It gives them a lot of flexibility (to serve existing or new markets).”

Source: Honolulu Star Advertiser, 11-25-2012, www.staradvertiser.com
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Hawaii Gas Seeks Approval to Ship Natural Gas

Hawaii Gas is currently seeking approval from the Federal Energy Regulatory Commission to be allowed to ship liquefied natural gas from the West Coast to Hawaii.  The company believes that if they are able to ship large quantities of natural gas to the islands, it could replace the need to use oil for the majority of the state’s electricity generation.  However, the state Department of Transportation has expressed a concern that there is not enough “safety distance” between the proposed Hawaii Gas facility at Honolulu Harbor and the surrounding area.  The DOT emphasized that Hawaii Gas had to comply with all state environmental and regulatory requirements.  The Sierra Club and the Blue Planet Foundation have also expressed their opposition and argue that Hawaii Gas’ proposal is contrary to the state’s foal of being dependent of fossil fuel.  The Federal Energy Regulator Commission has not announced when they will make their decision to allow Hawaii Gas the right to ship natural gas to the state.

Source: Honolulu Star Advertiser, 11-5-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
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Matson Shipping to Increase Fuel Surcharge

Matson Inc., the state’s largest ocean carrier, has announced that they will be increasing their fuel surcharge by 4.5 percent on October 7, 2012 due to increases in bunker fuel prices. This will mean that the fuel surcharge will rise from the current 39 percent to 43.5 percent. Matson’s Senior Vice President for Ocean Services, Dave Hoppes, stated, “While we were encouraged by the moderation of bunker fuel prices earlier this year, that trend has been reversed in recent months. Since announcing our last decrease in mid-July, bunker fuel prices have risen over 13 percent. Energy-related expenses continue to be a significant cost factor for most businesses, as well as consumers, with transportation companies especially hard hit.”

Executive Director of the Hawaii Food Industry Association, Lauren Zirbel, commented, “We’ve seen a lot of increases in costs in the form of government fees and taxes, but we also have seen a constant increase on the shipping side. Both of those things are a large part of the reason it’s so expensive to purchase groceries in Hawaii. There’s only so much that businesses can absorb. They really have no choice but to pass increased costs to the consumer because they’re already operating on a bare minimum.”

Source: Honolulu Star Advertiser, 9-8-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Inter-Island Cargo Shipments Decline

According to a report released by Young Brothers Ltd., cargo shipments between Honolulu and the neighbor islands have declined by 2.7 percent during the second quarter of 2012. Young Brothers is the state’s largest inter-island shipping company and their company president, Glenn Hong, stated, “The drop in second-quarter volume reflects the continued economic uncertainty. While we would prefer to reflect positive comparisons like we experienced in the first quarter of the year, the neighbor island economies at least appear to be stabilizing.”

Source: Honolulu Star Advertiser, 8-15-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Matson to Lower Fuel Surcharge on June 17, 2012

According to a statement released by Matson Navigation Company, they will be lowering their fuel surcharge from 45.5 percent to 42 percent on June 17, 2012.  Matson is Hawaii’s largest ocean transportation company and this reduction is due to a recent decline in fuel costs for their ships.  Senior Vice President of Ocean Services for Matson, Dave Hoppes, stated, “Escalating energy costs have impacted all businesses, as well as consumers, this year, with transportation companies especially hard hit.  We are pleased to be able to make this downward adjustment to our fuel surcharge. We will continue to monitor fuel costs and adjust the surcharge accordingly.”

Source: Honolulu Star Advertiser, 6-12-2012, www.staradvertiser.com

Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®

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