Matson reported a 61% drop in quarterly profit despite higher revenue as container volumes were weaker and vessel operating expenses increased.
The Jones Act shipowner reported net income of $7m for the first quarter, compared to $18.1m a earlier. Earnings per share of $0.16 per share were in-line with estimates.
Overall revenue was up 4% for the year to $474.4m, but operating costs were up 9% to $458m.
Chief executive and newly minted chairman Matt Cox said: "Matson's ocean transportation businesses performed largely as expected in the first quarter."
But expenses rose due to the deployment of an additional vessel in Hawaii, the timing of fuel surcharges, and lower volume in Hawaii and Alaska.
The biggest volume hit was in the automobile shipping to Hawaii, which dropped 20% from a year ago. Its Hawaii container business saw a 5.5% decline compared to the first quarter of 2016, and Alaska fell 4.2%.
The bright spot was its China container service, which saw volume rise 23% from a year ago. Wall Street analysts previously said Matson was likely to take back market share in its China expedited service last year thanks to the collapse of Hanjin Shipping.
Overall, Cox sees little change in the company's outlook with 2017 operating income to be lower than it was in 2016 and earnings before interest, taxes, depreciation and amortisation to be flat with last year.
