Matson

July 31, 2008

Subject:  Matson Raising Fuel Surcharge for Hawaii, Guam and Micronesia Services

Dear Matson Customer:

With fuel related costs continuing to climb to historic highs, Matson Navigation Company announced today that it is raising its fuel surcharge for its Hawaii service by four percentage points, from 38.25 to 42.25 percent, and its Guam/CNMI and Micronesia service by four percentage points, from 39.75 to 43.75 percent, both effective August 31, 2008.

"While record high fuel prices are adversely impacting virtually all businesses, as well as consumers, transportation companies are particularly hard hit," said Dave Hoppes, senior vice president, ocean services. "Fuel costs comprise a substantial component of Matson's operating costs and are an unavoidable expense for transporting goods, both on land and at sea. Since April 2008, Matson's fuel costs have risen 48 percent. Matson continues to focus on operating the most fuel efficient fleet possible and has successfully implemented a number of initiatives designed to reduce overall fuel consumption. While there have been some encouraging signs of some stabilization in the world oil market in recent weeks, the change in prices has not yet been reflected in bunker fuel. We would clearly welcome a downward trend in fuel prices, allowing us to lower our fuel surcharge."

In order to offset the impact of record breaking fuel prices, Matson has taken a number of actions to reduce fuel consumption when possible, such as slowing the speed of its containerships without adversely impacting its schedule reliability and temporarily removing one vessel from its Hawaii service to best meet current market conditions. In addition, Matson operates its four newest diesel powered containerships in its Long Beach/Hawaii/Guam service, utilizing the most fuel efficient vessels in its fleet.

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