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DHX - Dependable Hawaiian Express
12/7/2018
Dear Valued Customer:
Matson Navigation Company (“Matson”) announced that in order to offset increasing costs of operation and continuing substantial investment in Hawaii service improvements, Matson’s rates for their Hawaii service will increase by $225 per westbound container and $110 per eastbound container, effective with sailings on or after January 6, 2019.
As a result, our Hawaii rates will increase by like amounts for full container loads. For less-than-container load (LCL) cargo, our individual Customer rates will be adjusted based on a variety of factors, including the commodity, density and current costs. These changes will take effect with shipments sailing on or after January 6, 2019.
Additionally, due to changing costs in our Hawaii operations, we will be increasing our Hawaii delivery rates and local trucking rates, effective January 1, 2019. With Hawaii unemployment being extremely low, we have seen labor costs rise significantly, causing the bulk of the below increases. Our delivery agent in Kauai also took an increase in their rates for the first time in 13 years.
Please see the below table for the delivery rate increases by Island:
|
Terminal
|
Increase
|
|
Oahu
|
3%
|
|
Maui
|
5%
|
|
Kona
|
5% Zone 1 Delivery (LCL cube rates only)
|
|
KFS/Kauai
|
21% and 5% on YB/Interisland consolidation
|
|
Hitco/Hilo
|
6%
|
|
Molokai
|
10%
|
Matson is not taking any increases with respect to their Guam ocean service, but did previously announce a Port of Guam Terminal Handling Charge (THC) increase in April 2017. The announced increase will result in no change in our current THC rate for LCL cargo, and FCL rates will have this increase passed through.
Details of the approved plan are posted online at: http://www.portguam.com/sites/default/files/5-year_tariff_increase_pag_docket_17-01_04282017.pdf
Pursuant to Port of Guam’s second increase and in keeping with our longstanding practice of giving customers 30 days’ notice before rate increases, we will increase our THC rates for Guam and CNMI container shipments January 7, 2019.
The following summarizes this upcoming change:
Inbound from USWC to Guam
|
EQT
|
Existing Rate
|
New Rate
|
|
D20
|
$ 902.00
|
$ 910.00
|
|
D40/D45
|
$ 966.00
|
$ 975.00
|
|
Reefers
|
$ 1,247.00
|
$ 1257.00
|
|
Breakbulk *
|
$ 44.00
|
$ 44.00
|
|
CFS*
|
$ 44.00
|
$ 44.00
|
Transshipment to Saipan
|
EQT
|
Existing Rate
|
New Rate
|
|
D20
|
$ 468.00
|
$ 471.00
|
|
D40/D45
|
$ 468.00
|
$ 471.00
|
|
Reefers
|
$ 468.00
|
$ 471.00
|
Transshipment to Federated States of Micronesia, Republic of the Marshall Islands, Republic of Palau
|
EQT
|
Existing Rate
|
New Rate
|
|
D20
|
$ 468.00
|
$ 471.00
|
|
D40/D45
|
$ 468.00
|
$ 471.00
|
|
Reefers
|
$ 468.00
|
$ 471.00
|
*indicates per revenue ton; all others per container
Thank you in advance for your understanding in these matters.
Should you have any questions, please contact your local account executive or our Customer Service support center at 1-800-488-4888 or 1-310-537-2000, Ext. 2020.
We wish you and your loved ones the very best for a Happy Holiday Season and a prosperous 2019!
Thank you for your business!