News Updates

DHX - Breaking Alert

5/29/2024

BREAKING ALERT

Subject: Pacific Tariff Restructuring effective June 30, 2024

Dear Valued Customer:

We have been advised by Matson Navigation Company (“Matson”) that they will significantly restructure their tariffs for Hawaii, Guam, and Micronesia, and Pasha Hawaii will restructure their tariffs for Hawaii. The intent is to improve consistency in the application and administration of surcharges and restore the historical balance of their ocean Fuel Surcharge (FSC).  

These changes will involve how they bill their Wharfage and the harbor use fee levied by the Hawaii State Department of Transportation - Harbors Division to help fund harbor initiatives, including the ongoing development of Honolulu’s primary container terminals. These changes will include a significant reduction to their ocean-related FSC to bring it more in line with historical levels, and proportional adjustments to the base Ocean Freight rates. 

Most importantly, these changes will not result in any change to your current total cost. Here's how it breaks down:

Hawaii Wharfage 

Wharfage is intended to be a pass-through charge, but historically, the fee has been embedded in their Ocean Freight rate. When the State Wharfage fee changes - annually on July 1 - these ocean rates had been adjusted to reflect the amount of the related fee change. 

Effective with this change, Matson will begin breaking out the Wharfage fee as a separate line item in all tariffs, simplifying their tariff structure and administrative processes while also making this fee more transparent. As a result, the ocean freight rate will be reduced accordingly, again ensuring no impact on our customers' total cost. 

Fuel Surcharge (FSC) 

In compliance with the increasingly stringent global environmental regulations that have impacted fuel costs, HI Ocean Carriers are now using liquified natural gas (LNG), a leading “bridge fuel” that produces lower engine exhaust emissions compared to traditional marine fuels. The HI Ocean Carriers have also begun using biofuel as part of their decarbonization strategy. LNG and biofuel are more expensive than conventional, less environmentally friendly fuel types. 

Accordingly, they are restructuring their FSC at a lower level to restore balance in the proportional relationship between their FSC and base ocean rate—with no monetary impact on our customers. 

Effective Sunday, June 30, 2024, the ocean FSC for Hawaii and Guam shipments will be reduced by 50%. As a result, the new Hawaii FSC will be 22.0%, and the new FSC for Guam will be 23.0%. Effective Sunday, July 14, 2024, Micronesia will be reduced by 50%, and the new FSC will be 23.0%. 

They will simultaneously raise base ocean rates by the same dollar amount and separate the Hawaii wharfage fee, while ensuring no impact on our customer’s total cost.

These unprecedented changes will require our updating of both LCL and FCL rate structures.

Again, the end result will be the same as the current cost. 

We fully anticipate your questions and welcome you to contact our sales department, your local Account Executive, or our Corporate Customer Service Center at 800.488.4888, Ext. 2020, or email us at [email protected].

Thank you in advance for your understanding and continued business.