Matson Navigation Co., the biggest ocean cargo carrier to Hawai'i, will raise its fuel surcharge on April 6 to 33.75 percent, its highest level ever and one that consumers will feel as it is passed on.

The shipping line yesterday said the 2.25 percentage-point increase was needed because fuel costs have reached "historical record highs."

The surcharge didn't exist in the beginning of 1999, but by 2005, it exceeded 10 percent, it passed 20 percent last year and surged past 30 percent last month.

The higher fuel surcharge will roll down through businesses to consumers, said Neal Otani, president of wholesale produce supplier Y. Fukunaga Products Ltd.

"Eventually the consumer will pay," Otani said. "We live on an island, and we live with it. We're not happy."

"Like everything else, you pay for what you get," Otani added. "It still gets passed on to the last guy."

Otani's business ships in 65 percent to 70 percent of its produce from California and buys the rest locally. He said the farmers are feeling the fuel price increases in a lot of ways, from fuels for trucks, to fertilizer to seed.

Diesel fuel at the pump set a Honolulu record yesterday of $3.879, according to the AAA's Daily Fuel Gauge Report.

Matson's fuel surcharge news came as crude oil prices set a new record yesterday of $106 a barrel.

"Fuel-related expenses remain a major cost component for Matson, as well as other transportation companies," said Dave Hoppes, senior vice president, ocean services.

The hike translates into an increase of less than a dime to ship a 20-pound bag of rice to Hawai'i.

While Matson recognizes the impact these increases have on customers and consumers in general, "fuel consumption is an unavoidable cost that touches virtually all aspects of our operations," Hoppes said.

"Since our last increase was announced in early January, fuel prices have continued to be adversely affected by unprecedented demands for oil in the world market," he said.

Hoppes said Matson will continue to monitor fuel prices and adjust the fuel surcharge accordingly. The company sent a letter to customers today announcing the hike.

The company last raised the surcharge when it increased the charge to 31.5 percent Feb. 4.

The rate applies to Matson's Hawai'i, Guam/Commonwealth of Northern Mariana Islands CNMI and Micronesia services.

About 80 percent of all goods sold in Hawai'i come via ship.

The state's second-largest cargo carrier did not have any change in its rate yesterday, according to Horizon Lines spokes-man Ku'uhaku Park.

"Since we only found out about their fuel surcharge announcement a few hours ago, we are still in the process of reviewing our response options," Park said.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.