By Gerardo R. Partido
Variety News Staff

MATSON Navigation Co. has announced that it will raise its rates for the company’s Guam service by $125 per westbound container and $65 per eastbound container effective Feb. 4, 2007.
The rate increase also applies to Saipan, Tinian and Rota.
The price of shipping privately owned vehicles will also increase by $50 for westbound and eastbound shipments.
According to Matson, the increase will be filed with the Surface Transportation Board.
For inter-modal shipments, rates will increase by $200 per westbound container and $140 eastbound.
The company will also raise its terminal handling charge by $100 per container, both westbound and eastbound, effective Feb. 4.
Dave Hoppes, Matson senior vice president for ocean services, said the rate hikes will help offset increases in operating costs and support a number of investments for Guam.
“Given the essential role ocean transportation has in supporting Guam’s economy, Matson has made its fleet replacement program a high priority in recent years. Since 2002, the company has invested over $500 million in new containerships, reducing the average age of its fleet from 25 years to 14,” Hoppes said in a statement.
He added that these new vessels, with their more fuel-efficient diesel engines, will provide the region with modern, reliable service for decades to come.
Matson is also investing in new container equipment and information technology.
“This rate increase is consistent with our long-standing philosophy of implementing modest, incremental increases annually in order to reinvest in our service,” Hoppes said.
In addition to the Matson rate increases, the Port Authority of Guam will also be increasing the handling cost for transshipment containers and implementing a special fuel and security surcharge on all transshipment cargo and cargo destined for Guam.
According to Matson, it is working with the port to fully understand the details of these increases and their timing.
The shipping company intends to pass these costs on to customers as soon as the Guam port implements its new rate structure.