Matson is telegraphing improved earning amid heightened demand for its speedy transpacific container service.
The Matt Cox-led owner of 13 boxships ranging in capacity from 335 teus to 3,500 teus and three small car carriers on Thursday released preliminary third-quarter earnings between $67.2m and $69.4m.
Those result in earnings per share in the vicinity of $1.55 to $1.60 and compare to $36.2m in earnings for the same period in 2019.
"Our China service, consisting of the CLX and CLX+ services, was the primary driver of the increase in consolidated operating income year-over-year as a result of strong demand for our expedited ocean services and ongoing challenges in the transpacific air freight markets," chief executive Cox said.
Permanent service
"I am confident that we can make the CLX+ a permanent service because of Matson's 15-year track record of operating our industry leading expedited CLX service in the transpacific tradelane, the introduction of our new Alaska-to-Asia Express (AAX) service for Alaska seafood exports to Asia as part of the CLX+ westbound return trip to China, and the likelihood of continued favourable transpacific tradelane supply and demand dynamics going forward."
He also said that the company saw higher earnings along its routes to Hawaii, Alaska and Guam as a result of gradual reopening of the US economy.
As a result, Matson expects third-quarter operating income for its ocean transportation segment to reach $84.5m to $86.5m and its logistics operating income to come in between $11.5m and $12.5m.
The New York-listed company expects to officially release third-quarter results on 2 November.
