Matson quarterly losses expected despite fuel surcharges

MATSON Navigation Company, a US coastal-Hawaii container shipping line, is expecting to post a first quarter operating loss based on softening rates between Asia and the US, and spiralling fuel costs.


Its parent company, Alexander & Baldwin, hopes to recoup losses in surcharges during 2011 but "an environment of continually escalating fuel costs could impair timely recovery of these costs and further impact financial results," said company president and CEO Stanley Kuriyama.


There is concern that impact of the earthquake and tsunami in Japan will negatively impact the business already impacted by softening of spot-market container rates out of China, he said, adding that May will herald the contract cycle and a clearer rates picture.


The company's operating profit in 2010 increased 70 per cent year on year but with its primary business between US and mainland Hawaii, the impact of Japan's natural disaster, and eastbound transpacific trade slowing will be closely watched.
(Source:http://www.schednet.com)