Matson Files 3.5% Rate Increase for Service

Matson Navigation Co has filed a 3.5% rate increase in its United States Pacific Coast — Hawaii Service, effective Feb 14, 2001. The increase was filed with the Surface Transportation Board recently.

The increase is needed to help offset rises in operating costs and support ongoing investments. The most significant rise in operating costs pertains to the three-year International Longshoremen's and Warehousemen's Union contracts on the West Coast and in Hawaii, which were implemented in 1999 and provided double-digit increases in benefits and pension, as well as an 8% increase in wages over the life of the contract. Other operating expenses include the addition of two vessels in 2000, bringing the Matson Hawaii Service fleet to a total of eight ships. With the additional fleet units, Matson now provides four weekly direct arrivals in Hawaii from the West Coast. Prominent investments include $32 million for terminal improvements at the company's facility at Sand Island, $22 million in new container equipment, $15 million in fleet improvements, and $8 million in information technology.