Shipper Raises BAF on High Bunker Prices

by Ship & Bunker News Team
Tuesday May 13, 2014

Pacific shipper Matson, Inc. (Matson) has announced in an email to its customers that effective June 8, 2014 it will raise its bunker surcharges due to high bunker prices and additional costs related to higher consumption.

The new rates will rates rise on its Hawaii service by 3.0 percent, from 39.5% to 42.5%, and for its Guam/CNMI and Micronesia services by 1.5 percentage points, from 41.5% to 43.0%.

The adjustments are the second increases Matson has taken since October 2012, although in 2013 the bunker surcharges were reduced by 9% and 3.5% for company's Hawaii service and Guam/CNMI and Micronesia service respectively.

"Since announcing our last increase, which became effective March 23, 2014, Matson's fuel costs have continued to rise," said Dave Hoppes, senior vice president, ocean services. 

"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."

"Equally important, the extra voyages added to the higher costs we are already experiencing because of the Emission Control Area (ECA) regulations which became effective in August 2012."

"As with all increases, Matson gives our customers 30 days advance notice prior to implementation. We will continue to monitor fuel prices and adjust the surcharge accordingly."

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com