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MATSON RAISES BUNKER CHARGES

MATSON RAISES BUNKER CHARGES

   Matson Navigation Co., Inc. will raise its fuel surcharge from 6 to 7.5 percent in its U.S. mainland/Hawaii and Guam services, effective March 3.

   The carrier said that the higher charge is due to dramatic increases in fuel prices,

   “As a result of the ever increasing possibility of U.S. involvement in a war against Iraq, fuel prices have been rising rapidly,” said Paul E. Stevens, executive vice president.

   Matson burns approximately 1.8 million barrels of fuel annually. This means that every dollar increase per barrel of bunker fuel costs Matson approximate $1.8 million more in annual operating costs.

   Since the fall, when Matson last increased its surcharge, the price of bunker fuel has risen from about $30 per barrel to nearly $40 per barrel.

   Matson said that it cannot continue to absorb these additional fuel-related operating costs.