China-US string drives Jones Act Matson profits up 70pc

PROTECTED US Jones Act carrier, Matson Navigation, generated an operating profit of US$99.4 million for 2010, an increase of 70 per cent against 2009, on revenue of more than $1 billion, up 18 per cent.


Increased transpacific volume was credited for much of the increase that rose 56 per cent to 72,700 boxes after the shipping line last October offered its new CLX2 service linking Hong Kong, Shenzhen and Shanghai with Long Beach.


Volumes on Matson's Guam trade rose by eight per cent 15,200 units, while its Hawaii services handled about 136,700 boxes, an amount similar to 2009.


Said Stanley Kuriyama, president and CEO of parent company Alexander & Baldwin: "A&B's earnings for 2010 rebounded from 2009, driven principally by Matson's strong performance in China, a considerable turnaround in agribusiness, and increased gains from sales of improved properties. Equally important were investments made in transportation and real estate in 2010, including the start up of a second China to Long Beach service."


A&B's net profit last year more than doubled year on year to US$92.1 million. But Matson's fourth quarter 2010 operating profit declined 14 per cent year on year to $11.6 million. The company attributed this to higher vessel operating costs, largely because of its commencement of a second transpacific string.


But fourth quarter revenue swelled 24 per cent to $290 million and liftings on the transpacific trade lane soared 81 per cent, compared to the same period a year earlier, to 24,400 boxes. The report cited the company as saying this increase was due to Matson's new CLX2 service.
(Source:http://www.schednet.com)