Matson

May 11, 2011

Subject:  Matson Raising Fuel Surcharge for Hawaii, Guam/CNMI and Micronesia by 4 Percentage Points

Dear Matson Customer:

As a result of sustained near record high fuel prices over the past month, Matson is raising its fuel surcharge by 4 percentage points, from 43.5 to 47.5 percent for its Hawaii service, and from 45 to 49 percent for its Guam/CNMI and Micronesia service, effective June 12, 2011.

"Since announcing our last increase on March 31, fuel prices not only failed to stabilize, but continued to rise," said Dave Hoppes, senior vice president. "Matson recognizes that energy costs are a major concern for all businesses, as well as consumers. Unfortunately, transportation companies are especially hard hit, with fuel consumption an unavoidable and significant component of operating costs. As with all increases, Matson gives our customers 30 days advance notice prior to implementation. As a result, we are just now beginning to recover some of the extraordinary fuel related costs that necessitated our last increase. We will continue to monitor fuel prices and adjust the surcharge accordingly."

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

Thank you for shipping with Matson.