MATSON TO RAISE SHIPPING RATES

News release

Matson Navigation Company Oakland, California November 27, 2008

New charge on cranes added to list

SAIPAN, CNMI (Nov. 27, 2008) – Matson Navigation Company will raise its rates for the company's Guam/CNMI service by $120 per westbound and eastbound container, effective Feb. 1 next year. The NMI rate increase applies to Saipan, Tinian and Rota.

Matson will also raise its West Coast terminal handling charge by US$175 for both westbound and eastbound containers, also effective Feb. 1, 2009. Matson will also implement a new crane surcharge of US$125 per container, which is designed to help recover costs associated with the purchase and operation of three gantry cranes in Guam; the new charge will be implemented in March 2009, when the cranes have started operations.

The increase will be filed with the Surface Transportation Board.

"This rate increase will help offset rises in operating costs and support ongoing investments in our Guam service," said Dave Hoppes, senior vice president, ocean services.

Matson's terminal handling charge was first implemented in 2003 and is designed to recover a portion of the extraordinary costs associated with the movement of cargo through terminals. This charge is standard in the industry and appears as a separate line item at the bottom of the company's freight bills.

"Terminal handling costs comprise over 40 percent of Matson's operating costs," said Mr. Hoppes. "Matson continues to absorb most of the costs associated with terminal operations, the majority of which are driven by factors that are outside of our control, but needs to pass on some of the increased expenses to our customers."

To support Guam's infrastructure, three gantry cranes have been purchased by Matson and Horizon Lines from the Port of Los Angeles and are currently being refurbished, with delivery to Guam scheduled for early next year.

Matson is a wholly owned subsidiary of Alexander & Baldwin, Inc. of Honolulu.

Saipan Tribune http://www.saipantribune.com

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