Matson

October 5, 2011

Subject:  Matson Decreasing Fuel Surcharge by Two Percentage Points for Hawaii, Guam/CNMI and Micronesia Services

Dear Matson Customer:

As a result of continuing moderation in bunker fuel prices, Matson announced today that it is decreasing its fuel surcharge by two percentage points, from 42.5% to 40.5% for its Hawaii service, and from 44% to 42% for its Guam/CNMI and Micronesia service, effective this Sunday, October 9, 2011. This is third downward adjustment Matson has made since late August. A two percentage point reduction became effective August 28, followed by a three percentage point reduction on September 25. With this latest adjustment, the fuel surcharge will have been decreased by seven percentage points in a six week period.

"We are pleased to be able to pass along this third consecutive decrease, which for most customers represents a reduction in shipping costs ranging from $60 to $105 per container," said Dave Hoppes, senior vice president, ocean services. "The cost of bunker fuel, which is the type of fuel consumed by most ocean carriers, rose faster over the past year than crude oil and has been slower in experiencing declines in prices; fortunately, bunker fuel prices have moderated recently, allowing us to make this third decrease. Matson has made a practice of giving 30 days notice for upward rate adjustments, but as with previous decreases, we are passing on this downward adjustment to our customers as soon as possible.We will continue to monitor fuel costs 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.