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Hawaii's largest ocean shipper, Matson Navigation Company is expected to post an operating loss for the first quarter of 2011 due to the recent surge global bunker prices.

In a statement, Stanley M. Kuriyama, president and chief executive officer of Alexander & Baldwin Inc. (A&B), 100 percent owner of Matson, said: "Increased fuel prices are having a disproportionate effect on transportation companies as fuel is an unavoidable and significant component of operating costs. Matson’s ability to employ fuel price adjustment mechanisms to limit the impact of price fluctuations on its first quarter earnings has been outpaced by the steep acceleration in fuel prices. We expect to recoup a large percentage of fuel cost increases through surcharge mechanisms in 2011, however, an environment of continually escalating fuel costs could impair timely recovery of these costs and further impact financial results."

“We are carefully monitoring the impact of fuel, as well as the ongoing freight-rate environment in China, where spot-market container rates are relatively soft. We expect to have more clarity on China rates with the commencement of the new annual contract cycle in May and the beginning of the peak season this summer," Kuriyama added.