The state's largest ocean cargo carrier, Matson Navigation Co., today announced it is raising its fuel surcharge for its Hawai'i service by four percentage points to 42.25 percent in the wake of an increase announced earlier by competitor, Horizon Lines LLC.

Matson also said its Guam/CNMI and Micronesia service will be increased by four percentage points, from 39.75 to 43.75 percent. Both increases are effective Aug. 31.

Officials once again cited historic highs for fuel.

"While record high fuel prices are adversely impacting virtually all businesses, as well as consumers, transportation companies are particularly hard hit," said Dave Hoppes, Matson senior vice president of 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."

Hoppes said 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," he said.

Among the fuel consumption reduction actions taken so far, Matson cited: slowing the speed of its container ships without adversely impacting its schedule reliability; and temporarily removing one vessel from its Hawai'i service, he said. In addition, Matson operates its four newest diesel powered container ships in its Long Beach/Hawai'i/Guam service, utilizing the most fuel-efficient vessels in its fleet.

Rising fuel costs have pushed Hawai'i's No. 2 ocean cargo carrier, Horizon Lines LLC, to charge customers more for shipments to and from the Mainland just a month after its last fuel surcharge increase.

On July 18, Horizon announced it will raise its fuel surcharge by 4.5 percentage points to 42.75 percent effective Aug. 17.

The hike is Horizon's fourth this year that collectively have added 14.25 percentage points to the surcharge since January. Until yesterday, however, the increases had been spaced about three months apart.