Hawai'i consumers can expect to pay more for goods coming in on Matson Navigation Co. ships starting in January.

The state's largest shipper said yesterday it will increase rates on Jan. 6 by $75 per westbound container and $40 per eastbound container. That's an average rate increase of 2.5 percent, the smallest annual increase in nearly a decade, the company said.

Matson also will raise its terminal handling charge by $125 per westbound container and $60 per eastbound container effective Jan. 6.

The increases are on top of a recently announced increase in Matson's fuel surcharge, which will go to 29 percent from 24 percent effective Dec. 14.

Combined, the increases will boost the cost of shipping a vehicle to Hawai'i to about $1,055, up from $975 previously, according to Matson spokesman Jeff Hull.

The increased rates are also likely to show up at the supermarket, hardware store and other retail establishments as businesses pass along the higher costs to consumers.

The hike translates into an increase of 8.8 cents to ship a 20-pound bag of rice to Hawai'i. Shipping costs for a can of soda will go up by about half a cent, about one penny for a head of lettuce, and 5.6 cents for an 8-foot-long 2-by-4 piece of lumber.

"This rate increase will help offset rises in operating costs and support a number of investments in our Hawai'i service," said Dave Hoppes, senior vice president, ocean services.

"Given the essential role ocean transportation has in supporting Hawai'i's economy, Matson has continued to make significant investments in upgrading its fleet," he said.

In the past six years, Matson has spent $584 million on U.S. shipyards for fleet enhancements, including more than $500 million for construction of four new container ships, he said.

"These investments will ensure Hawai'i will be served with modern, reliable service for decades to come," he said. Matson also continues to invest in new container equipment, information technology and enhancements to its Neighbor Island fleet and terminal facilities.

Hoppes also warned that next year "an unprecedented number of government and regulatory issues, ranging from new trucking regulations in Southern California to state and federal environmental and security mandated programs," could have an additional impact on Matson's costs, some of which may be passed on to customers.

The increases will be filed with the federal Surface Transportation Board. Matson's terminal handling charge was first implemented in 2003 and is designed to recover a portion of the extraordinary costs associated with the movement of cargo through terminals. This charge is standard in the industry and appears as a separate line item at the bottom of the company's freight bills.

Terminal handling costs comprise approximately 40 percent of Matson's operating costs and today represent nearly $300 million annually, said Hoppes.

"In the past five years, terminal handling costs, which are driven by many factors that are outside of our control, have risen by 37 percent," Hoppes said. "Matson continues to absorb the vast majority of these increases but needs to pass on some of the costs to our customers. Some of the increased costs actually went into effect in July 2007."

Matson is a wholly owned subsidiary of Alexander & Baldwin Inc. of Honolulu.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.