By Gerardo R. Partido
Variety News Staff

JUST like Horizon Lines, Matson Navigation is also increasing its fuel surcharge due to the rising cost of fuel.
Starting May 27, Matson will raise its fuel surcharge to 22.5 percent, up by 1.75 percentage points from 20.75 percent.
The surcharge hike covers the carrier’s Hawaii, Guam and CNMI services.
Dave Hoppes, senior vice president for ocean services, said Matson is raising its fuel surcharge due to rising fuel prices which he described as “near record” levels.
He pointed out that when there were steady declines in fuel prices in late 2006 and early 2007, Matson responded by making three consecutive fuel surcharge cuts.
Hoppes said fuel consumption is an unavoidable and significant component of Matson’s operating costs, with every dollar increase per barrel adding over $2 million in annual costs.
He said Matson will continue to monitor fuel costs and adjust its fuel surcharge accordingly.
Meanwhile, Matson has hired a new executive to supervise its China-Long Beach Express service.
John Lauer, a former senior manager with APL Ltd., has been tapped as director of Matson’s trans-Pacific services, which runs the China-Long Beach Express.
The new route, which was launched by Matson last year, links the U.S. west coast to ports in China via Guam and Honolulu, coinciding with Matson’s recent ship acquisitions.
This new service represents a $365 million investment in the region, ensuring Matson’s continued presence in the market and enhancing service to benefit Guam’s businesses and residents.
Under the new service, Guam is served by Matson’s most modern, fuel-efficient vessels, including four new ships built in the past four years, further increasing service efficiencies to Hawaii, Guam, the CNMI and China.
According to Matson, the new head of this service has a track record of meeting sales targets and financial objectives, as well as a comprehensive understanding of key customers and accounts throughout the U.S. and China.