Matson

November 12, 2008

Subject:  Matson Makes Fifth Consecutive Decrease in Fuel Surcharge for Hawaii, Guam/CNMI and Micronesia

Dear Matson Customer:

As a result of continuing declines in fuel prices, Matson is lowering its fuel surcharge by 5.5 percentage points for its Hawaii service, from 25 to 19.5 percent, and its Guam/CNMI and Micronesia service, by 5.5 percentage points, from 26.5 to 21 percent, effective November 16, 2008.

"Matson is very pleased to be able make its fifth consecutive decrease in its fuel surcharge in the past two months," said Dave Hoppes, senior vice president, ocean services. "Following an extended period in which oil costs hit historical record highs, it is encouraging to see this downward trend continue to be reflected in the prices the company is now paying for bunker fuel. While Matson has made a practice of giving 30 days notice of rate adjustments, we are again passing this decrease on to our customers as soon as possible so that they can quickly realize the benefits of this reduction during this difficult economic environment. For most customers, this represents a decrease in shipping costs ranging from $120 to $200 per container. We are hopeful this current trend will continue, resulting in further decreases. We will continue to monitor fuel costs and adjust the surcharge accordingly."

Matson's last adjustment to its fuel surcharge was a decrease of 2 percentage points for its Hawaii, Guam/CNMI and Micronesia services, effective Sunday, November 2, 2008. With this latest adjustment, Matsons fuel surcharge will have been lowered by 22.75 percentage points since September 20; for most customers, this represents an overall decrease in shipping costs ranging from $530 to $845 per container.

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