Matson

January 22, 2007

Subject: Matson Decreases Fuel Surcharge by 1.25 Percentage Points

Dear Matson Customer:

As a result of recent declines in bunker fuel prices, Matson Navigation Company announced today that it is lowering its fuel surcharge in its Hawaii, Guam/CNMI and Micronesia services by 1.25 percentage points, from 18.75 percent to 17.5 percent, effective January 28, 2007.

"Bunker fuel prices continue to decrease, allowing us to make this third consecutive reduction to our fuel surcharge," said Dave Hoppes, senior vice president, ocean services. "Following an extended period of rapidly escalating fuel costs, we’ve been encouraged by this recent ongoing downward trend. We will continue to monitor fuel costs and adjust the fuel surcharge accordingly. While fuel prices remain volatile, we are hopeful this current trend will continue."

If you have any questions, please contact your local sales representative or our Customer Support Center.

Thank you for shipping with Matson.