Higher rates and a surge in volume from China produced a 75 percent increase in Matson Navigation second-quarter operating profit,
Matson’s revenue rose 18 percent to $257.2 million, despite sluggishness in the carrier’s core Hawaii market. Operating revenue from ocean transportation rose to $37 million from $21.1 million a year earlier.
“Trans-Pacific market dynamics are very favorable, as the combination of strong U.S. demand and tighter shipping capacity has contributed to full utilization and improved pricing on our China service vessels. We expect this favorable environment to continue through 2010 and into 2011,” said Stanley M. Kuriyana, president and CEO of Matson’s parent company, Alexander & Baldwin.
By the Numbers:
Container rate benchmark
Shipping boosted Alexander & Baldwin’s second quarter results. The parent company’s net income rose to $28.9 million from $12.6 million from a year earlier while revenue increased to $398.9 million from $351 million.
Mason’s Hawaii container traffic fell 2 percent to 33,700 boxes while automobile volume dropped 22 percent to 21,100 vehicles, a decline Matson blamed on the timing of automobile rental fleet replacements.
Shipments to Guam’s smaller market were up, with container volume increasing 17 percent to 4,200 units, due primarily to shipments for the expansion of military facilities on the island.
The big gainer was the carrier’s China-to-U.S. service, where container volume jumped 35 percent to 15,000 containers during the quarter while rates recovered amid tight capacity.
Matson said it plans this fall to add a second weekly string of vessels to its eastbound China service, which is run as an extension of the company’s westbound service to Hawaii and Guam.
Alexander & Baldwin said operating profit from Matson’s logistics services slipped 17 percent to $1.5 million despite a 10 percent increase in revenue to $88.6 million. The company said lower intermodal yields resulting from competition and equipment constraints offset improved truck and intermodal volumes and trucking yields.
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