Dear Matson Customer:

As a result of recent increases in bunker fuel prices and other energy-related costs, Matson Navigation Company announced today that it is raising its fuel surcharge in its Hawaii and Guam/CNMI services by 1.75 percentage points, from 20.75 to 22.50 percent, effective May 27, 2007.

"While Matson experienced steady declines in fuel prices in late 2006 and early 2007, allowing us to make three consecutive downward adjustments, current trends have been on the rise again, returning to near record high levels," said Dave Hoppes, senior vice president, ocean services. "Fuel consumption is an unavoidable and significant component of our operating costs, with every dollar increase per barrel adding over two million dollars in annual expenses. We will continue to monitor fuel costs and adjust the fuel surcharge accordingly."

If you have any questions, please contact your local sales representative or our Customer Support Center. Thank you for shipping with Matson.