Matson blames fuel, China loop costs for US$7.4 million Q1 loss

OAKLAND-based Matson Navigation Company has posted a quarterly loss of US$7.4 million having declared a $10.4 million first quarter profit in 2010.


The Jones Act carrier mostly attributed its loss to rising fuel costs having consumed its increasing revenue, which went up 17 per cent to $269.6 million in the first quarter year on year.


Stanley Kuriyama, president and CEO of Matson's parent, Honolulu-based Alexander & Baldwin, said: "Fuel prices outpaced Matson's ability to employ its fuel surcharge adjustment mechanisms."


Also contributing to the loss, he said, was the start-up costs of Matson's second China service, which did not exist in the first quarter of 2010. But this at least provided for a more than doubling of the company's container volume. Meanwhile Guam volumes fell because of "competitive pressures", he said.
(Source:http://www.schednet.com)