Matson Navigation Co. said yesterday it will lower its fuel surcharge in its Hawai'i, Guam and Micronesia services from 18.75 percent to 17.5 percent beginning Sunday.

It will be Matson's third consecutive fuel surcharge decrease since October, which the company said was made possible by a continued decline in the price of bunker fuel, which is used to power its ships' engines. Matson said this surcharge decrease represents a drop in shipping costs ranging from $25 to $80 per container.

"Following an extended period of rapidly escalating fuel costs, we've been encouraged by this recent ongoing downward trend," said Dave Hoppes, senior vice president of ocean services. "We will continue to monitor fuel costs and adjust the fuel surcharge accordingly. While fuel prices remain volatile, we are hopeful this current trend will continue."

Matson recently completed a $500 million, four-year fleet-modernization program. The company added four fuel-efficient ships and lowered its average fleet age to 14 years.

Matson is a wholly owned subsidiary of Honolulu-based Alexander & Baldwin Inc. Shares in the company rose 4 cents to close at $47.42 yesterday on the Nasdaq market.

Horizon Lines, the state's No. 2 shipper, will look at Matson's fuel surcharge decrease and make a decision soon, a company spokesman said. Horizon typically matches Matson's fuel surcharges and rates.