Fuel Surcharge News

Matson reported net income of $18.4 million, or $0.43 per diluted share, for the quarter ended June 30, 2019. Net income for the quarter ended June 30, 2018 was $32.6 million, or $0.76 per diluted share. Consolidated revenue for the second quarter 2019 was $557.9 million compared with $557.1 million for the second quarter 2018. For the six months ended June 30, 2019, Matson reported net income of $30.9 million, or $0.72 per diluted share compared with $46.8 million, or $1.09 per diluted share in 2018.

With less than ten months before the IMO 2020 regulation on sulfur oxide emission goes into effect Jan 1, carriers and shippers alike are facing an 'uncomfortable uncertainty' over its potential effects on costs and freight rates as they enter the 2019-2020 trans-Pacific contracting period.The International Maritime Organization 2020 (IMO 2020) regulation on sulfur oxide emission will translate into an increase in freight rates, said Seabury Maritime, the global maritime and transportation investment & merchant banking and industry advisory firm, in a whitepaper.The IMO 2020 regulation mandates the reduction of sulfur oxide emission…

The Global Shippers Forum has reacted with suspicion to the announcement by the Maersk container shipping line of new fuel surcharge arrangements from 1 January 2019 to recover presumed costs from the introduction of low-sulphur marine fuel from 1 January 2020.Based on the information released by Maersk, the new charges, which are additional to agreed contract rates, are based on two factors - an average cost of fuel and a ‘trade factor’ that upscales the costs on head trades and discounts the fuel cost on reverse trades. But because the charge is per box, the greater number of revenue-earning boxes sailing west will collectively pay…

Improving the environmental performance of the container shipping supply chain is a common goal shared by shipping lines, shippers, freight forwarders and non-vessel operating common carriers, as well as governments, regulators, and the public around the world.The UN International Maritime Organization (IMO) requires that from 1 January 2020, Sulphur content in the fuel used for international shipping must be limited globally to 0.5%, compared with the current standard of 3.5%, in order to minimize emissions of Sulphur oxides from ships.MSC Mediterranean Shipping Company said in a press statement that its operating costs are expected to increase significantly as "we continue to prepare for the 2020 low-Sulphur fuel regime.

Matson, Inc. today reported net income of $26.6 million, or $0.60 per diluted share for the quarter ended December 31, 2015. Net income for the quarter ended December 31, 2014 was $27.8 million, or $0.63 per diluted share. Consolidated revenue for the fourth quarter 2015 was $494.8 million compared with $443.5 million reported for the fourth quarter 2014. For the full year 2015, Matson reported net income of $103.0 million, or $2.34 per diluted share compared with $70.8 million, or $1.63 per diluted share in 2014. Consolidated revenue for the full year 2015 was $1,884.9 million, compared with $1,714.2 million in 2014. Matt Cox, Matson's President and Chief Executive Officer, commented, "2015 was an exceptional year for Matson. Financially, it was the best year in our history. Mr.

Alaska Marine Lines, a marine transportation company providing barge service to and from Alaska and Hawaii, informs it has filed with the U.S. Surface Transportation Board to decrease the fuel surcharge from certain locations as a result of fluctuating fuel costs.   Effective September 6, the line’s fuel surcharge will be reduced from 29 percent to 28 percent on shipments to, from and within Central Alaska and Prince William Sound locations

Matson, Inc. today reported net income of $25 million, or $0.57 per diluted share for the quarter ended March 31, 2015. Net income for the quarter ended March 31, 2014 was $3.4 million, or $0.08 per diluted share. Consolidated revenue for the first quarter 2015 was $398.2 million compared with $392.5 million reported for the first quarter 2014. Matt Cox, Matson's president and chief executive officer, commented, "As expected, Matson carried strong momentum into the first quarter of 2015.

Lower oil prices are sharply reducing the cost of shipping merchandise from Asia to the United States and Europe as the cost of bunker fuel tumbles. Container shipping companies deal with the volatility in fuel prices by adding a separate bunker adjustment factor or fuel surcharge to their freight rates. Fuel can account for more than 60 percent of the total operating costs of moving freight across the oceans so the surcharges are one of the most important elements of total transportation costs.

Alaska Marine Lines has filed with the Surface Transportation Board to decrease the fuel surcharge from 31% to 29% on shipments to, from and within Central Alaska and Prince William Sound locations. The line has also filed to decrease the fuel surcharge from 14% to 7% on shipments to, from and within Southeast Alaska. The decreases will become effective on January 25, 2015. Alaska Marine Lines said it will continue to monitor fuel prices on a daily basis and will adjust the fuel surcharge when necessary.

Continuing decreases in bunker fuel prices has prompted Matson to drop its fuel-related surcharge by 4 percentage points. Matson announced it will lower its fuel surcharge for service to Hawaii, Guam, the Commonwealth of the Northern Mariana Islands and Micronesia, effective Sunday. The decrease takes the surcharge from 35.5 percent to 31.5 percent for its Hawaii service, from to 36 percent to 32 percent for Guam/Commonwealth of the Northern Mariana Islands service and from 41 percent to 37 percent for Micronesia service, the company said. The decrease goes into effect on Sunday, according to the company. "We continue to be encouraged by the recent moderation in bunker fuel prices…

Matson, Inc. said it holds a higher operating income outlook for the fourth quarter 2014, citing higher than expected freight rates and volumes as well as declining bunker fuel prices leading to gains. The company also made preliminary comments regarding its outlook for 2015, stating it anticipates flat to higher income for the coming year. Matson said it expects fourth quarter 2014 ocean transportation operating income to be approximately $45 million primarily driven by higher than expected freight rates in its China service and continued rate and volume growth in Hawaii and Guam.

Matson, Inc., a U.S. carrier in the Pacific, announced its results for the third quarter of 2014, in which it reported a net income of $21.5 million, or $0.50 per diluted share, compared with $17.2 million or $0.40 per diluted share in 2013, while consolidated revenue for the third quarter 2014 was $441.8 million compared with $415 million in 2013. For the nine-month period ended September 30, 2014, Matson reported net income of $43 million, or $1 per diluted share compared with $46.4 million, or $1.08 per diluted share in 2013.

Rickmers-Linie has declared its support for the introduction of stricter sulphur regulations but expects that it will inevitably lead to an increase in the cost of marine fuels. “While shipping is already the most environmentally friendly mode of transport, the new regulations help to further reduce the impact on the environment and our health,” said Ulrich Ulrichs, Chief Executive Officer of Rickmers-Linie. The new regulations come into effect on January 1, 2015 in the Emission Control Areas (ECA) in the U.S. and Canada as well as the North Sea, English Channel and the Baltic Sea.

Leading US carrier in the Pacific Matson report that in the first quarter of 2014 its financial results were negatively impacted by the timing of fuel surcharge collections. Matt Cox, Matson's President and Chief Executive Officer, commented, "Our businesses performed as we anticipated in the first quarter of 2014, driven by sustained demand in our core markets and continued freight rate strength in all of our markets. And while the timing of fuel surcharge collections significantly impacted financial results during this quarter, our businesses are running well and continue to generate substantial cash flow. Mr. Cox added, "We continue to be encouraged by our prospects in Hawaii…

Vessel operators seek protection by hedging fuel needs. It’s easier than you might think. Some workboat operators defend themselves against higher diesel prices by buying futures contracts, while others purchase fuel at prices fixed in advance from their suppliers. Others, perhaps less-savvy and/or smaller companies, however, take their chances by buying in the spot market. While some operators are uncertain about their future fuel requirements and consumption, domestic ferry operators for the most part know exactly what they’ll need in the year ahead.

BC Ferries explains that due to current world fuel market conditions the company is advising customers that a fuel surcharge will be implemented on the majority of its routes on January 17, 2014. The fuel surcharge will be 3.5 per cent on average on all of its routes with the exception of the Port Hardy - Prince Rupert and Prince Rupert – Haida Gwaii routes which will not be affected. “Market pricing indicates that the price differential will continue throughout the year,” said Mike Corrigan, BC Ferries’ President and CEO.

Beginning on February 2, 2014 Alaska Marine Lines (AML) said it will utilize a different method for calculating fuel surcharge related to pick up, delivery and trucking in the Lower 48 and Alaska. Prior to this change AML has charged the same FSC for trucking and barge transportation. The cost of fuel for trucking can vary greatly compared to ocean transportation. AML trucking services are primarily provided by contracted owner/operators. According to AML, the inland fuel surcharge more closely reflects the amount it pays for the trucking service that is purchased on behalf of its customers. The Inland FSC will be adjusted weekly using the Federal Energy Information website to determine fuel price.

Container shipping line APL has announced a new fuel surcharge formula in the Trans-Pacific Trade that reflects the financial impact of slow-steaming, the industry-wide practice of reducing vessel speed to reduce fuel consumption, control costs and reduce emissions. The new formula results in a somewhat lower bunker surcharge, effective July 1, 2011, than would have been assessed under the previous formula which was based on a guideline from the Transpacific Stabilization Agreement. The surcharge for a standard 40-foot standard container shipped from Asia to the U.S. West Coast drops to $538 from $568. The surcharge for a standard 40-foot standard container shipped to the U.S. East Coast drops to $1,049 from $1,107.

Discovery Cruise Line, which offers daily ferry service with cruise line amenities between South Florida and Grand Bahama Island except Wednesdays, announced that it is lowering its fares and fuel surcharge. Hanns J. Hahn, General Manager of Discovery, said that "Effectively immediately and at least through January 3, 2009, the fare for a same day roundtrip Fun Day Cruise has been reduced to just $39.99 per person and the price of a two day, one night Cruise N Stay Staycation has been reduced to only $89.99 per person. In effect, two are sailing for the previous price of one." Hahn said that "In addition, we have lowered the fuel surcharge by $10 to $19 per person.

Attorney General Bill McCollum filed a lawsuit against a Broward County cruise ship company for failing to adequately disclose fuel surcharge fees. According to the lawsuit, Imperial Majesty Cruise Line LLC has collected approximately $4m in fuel surcharges from late 2006 to present. The company, which offers two-day cruises to the Bahamas, is also accused of falsely representing those fees as governmental taxes or fees. Consumer complaints indicated that when travelers arrived to board the ship they were charged the surcharge, even though it was not, in any way, mandated by any governmental entity. Many consumers first learned of the $20-$30 surcharge only when they arrived to embark on their cruise.

With fuel related costs reaching historical highs, Matson Navigation Company announced today that it is raising its fuel surcharge for its Hawaii service by 4.5 percentage points, from 33.75 to 38.25 percent, and its Guam/CNMI and Micronesia services by 6 percentage points, from 33.75 to 39.75 percent, both effective July 13, 2008. This is the first adjustment Matson has made to its fuel surcharge since April 6, 2008. While Matson has traditionally applied the same percentage fuel surcharge to all of its Pacific service, it is implementing a new program that recognizes that there are greater fuel requirements in serving the more geographically remote regions of Guam and .

Star Clippers will implement a fuel surcharge on new bookings starting Dec. 17, 2007. The assessment will be $8 per person per day to a maximum of $100 per person on any sailing for guests from the United States, Canada and Latin America. The surcharge will be assessed on all three of the line's tall ships on all sailings through April 2009. "After discussing the situation of increased fuel costs with our tour operators and travel agent partners, we have concluded the fairest and least disruptive method of assessing the surcharge would be only on new reservations made on or after Dec. 17," said Jack Chatham, Star Clippers' vice president of marketing and sales for North and Latin America.

Last week, due to dramatic increases in fuel prices, Matson Navigation Company, Inc. (Matson) announced that it is raising its fuel surcharge from 6.5 to 7.5 percent in its Hawaii and Guam services effective September 15, 2003. "As anyone who drives a car is well aware, fuel prices have been rising steadily in recent months," said Dave Hoppes, vice president, ocean services. "For transportation companies, the costs are especially significant. Matson burns approximately 1.9 million barrels of fuel annually. For every dollar increase per barrel of bunker fuel, Matson experiences an approximate $1.9 million increase in annual operating costs. We cannot continue to absorb these additional fuel-related operating costs.