Matson will execute a 3.5 percentage point increase on its fuel surcharge that has the potential to affect the price of produce, construction material and automobiles it ships to these island economies.
All cargo shipped by Matson Navigation Company to and from Guam, Micronesia and Hawaii will be affected when the shipping company increases its fuel surcharge on Feb. 7. Matson will execute a 3.5 percentage point increase on its fuel surcharge that has the potential to affect the price of produce, construction material and automobiles it ships to these island economies.
The shipping company said rising fuel costs triggered the increase.
The surcharge for customers on Guam and the Commonwealth of the Northern Mariana Islands will move from 25.5 percent to 29 percent, while in Hawaii it goes up from 24 to 27.5 percent.
"As many of our customers are aware, fuel prices have risen dramatically in recent months," said Dave Hoppes, Matson senior vice president of ocean services.
Hoppes said it's the first fuel surcharge increase Matson initiated since July 2009 and that the company's last adjustment was a decrease of 4 percentage points in October.
"Unfortunately, in the past several months fuel costs have increased significantly, necessitating this new upward adjustment," Hoppes said. "Fuel costs comprise a substantial component of Matson's operating costs and are an unavoidable expense for transporting goods."
While he said he is "hopeful" that fuel prices will begin to stabilize, he warns that if it doesn't and prices go up, the company "will need to make further upward adjustments."
Christopher Felix, president and principal broker for Century 21 Realty Management Company, said in property management, any increase in the goods has to be passed to the consumer.
He said as material costs go up due to higher shipping rates, tenants could eventually see an increase.
"This could lead to (an) increase in rentals and prices as far as management and improved properties are concerned," Felix said. "It's got to be passed on eventually to the tenant. From that aspect it could be a slight increase, but the ones who it will affect stronger are the suppliers."