Hawaii’s Matson reported a jump in second-quarter profits thanks to strong container freight rates on its China services.
The liner operator and container ship owner said it earned net income of more than $113m, up from $80.8m in the same quarter of 2023.
That translated into diluted earnings per share of $3.31, well above the $3 average forecast of analysts.
Matson, which focuses on US-built Jones Act tonnage, said it reeled in $847m in revenue, surpassing the $773m a year earlier.
Chief executive Matt Cox said the Honolulu-based company “performed well” during the period, with better operating income in its ocean shipping and logistics businesses.
“Within ocean transportation, our China service saw significantly higher year-over-year freight rates and was the primary driver of the increase in consolidated operating income,” he said in the results statement.
“A supportive economic and consumer demand environment in the US coupled with tighter supply chain conditions led to elevated freight rates for our expedited transpacific services.”
Cox said that freight rates should remain high in the near term thanks to economic, supply chain and geopolitical conditions.
And he said a shift from air freight to expedited ocean shipping will bolster the China service in the long term.
There was a 3.6% year-on-year decrease in container volumes on Matson’s Hawaii services, as wildfires in Maui reduced tourism to the island.
Guam container volumes fell 6.1%.
The quarterly results pushed first-half profits to $149m, up from $115m in the opening six months of 2023.
“Looking ahead, we expect our China service to continue to see elevated freight rates during the traditional peak season in the third and early fourth quarters,” Cox said.
“For our domestic trade lanes, we expect volumes to approach the levels achieved in 2023, absent a significant change in the trajectory of the US economy.”
