Other Stories this Issue: Matson and MIL: Experts in Moving Overized Cargo By Land or By Sea READ STORY Hawaii s Economy Headed for Downturn, Slow Recovery Seen for 2010 As with the rest of the United States, Hawaii s economy contracted in 2008 and looks to be heading into further decline in 2009, states Mark Miller, Matson s general manager, market planning. Hawaii s economic descent was already evident prior to the fourth quarter of 2008, but the rapid Matson Provides Customers with the RIGHT EQUIPMENT at the RIGHT TIME READ STORY Receives Support from President Obama READ STORY I I I I
Headed for Downturn, Slow Recovery Seen for 2010 Part of the 2008 decline in Hawaii s economy can be attributed to factors such as the shutdown of Aloha Airlines, record high fuel prices and failing residential investment. Hawaii s economic recovery will depend very much on the recovery of the U.S. and global economies. A s with the rest of the United States, Hawaii s economy contracted in 2008 and looks to be heading into further decline in 2009, states Mark Miller, Matson s general manager, market planning. Hawaii s economic descent was already evident prior to the fourth quarter of 2008, but the rapid deterioration of financial markets and the global economy late in the year exacerbated what might have been a normal cyclical decline. Many fundamentals remain solid for Hawaii including sustained federal defense-related activity and low exposure to sub-prime mortgages, but the current global economic situation will overshadow them. For 2009, most Hawaii forecasts call for continued declines in tourism, jobs and real personal income. The recent reduction of wealth and discretionary spending accompanied by tremendous economic uncertainty will not encourage tourists to come to Hawaii for awhile nor will they stimulate external investment in Hawaii real estate. Before this situation emerged, Hawaii already had encountered several setbacks in 2008, including:. The shutdown of Aloha Airlines and ATA along with a 20% air seat capacity reduction from the mainland. The exit of two cruise ships added to the loss of tourist capacity.. Record high oil prices for most of the year. Falling residential investment and the winding down of the local construction cycle. Job losses at several key Hawaiian companies Hawaii unemployment continues to rise, reaching 5.5 percent in December 2008. This was up 2.4 percentage points from a year earlier and twice the rate just 16 months before. Related to this, Job losses made or anticipated are expected total payroll jobs are expected to show no growth when the final to provide a setback to Hawaii s economy. results are tallied for 2008. Real personal income is a broad Source: Bank of Hawaii EEconomic Research Center 2008 measure of Hawaii s economic health, and its growth in the first half of 2008 slowed to only 0.4 percent. With the additional turmoil in the second half, real personal income growth is expected to be -0.2 Mark Miller, general manager, market planning percent for the full 2008 year. Hawaii s inflation rate has slowed a bit from 2006, however this rate is still higher than the U.S. average. With the exception of inflation, most Hawaii forecasts call for these key measures to worsen in 2009. Additionally, tourism is Hawaii's largest industry and the decline seen in 2008 is expected to continue into 2009, albeit at a slower rate of descent. Most Hawaii forecasts do not envision a recovery until 2010. By then, the tourist industry will have absorbed three consecutive years of decline, and construction may be nearing its bottom. The beginnings of an upward construction cycle could appear after that, especially if home affordability improves, states Miller. However, HAWAII ECONOMY continued on next page
HAWAII ECONOMY continued Hawaii s economic recovery will depend very much on the recovery of the U.S. and global economies. This includes some restoration of wealth, liquidity and confidence. All of these greatly influence the ability and willingness of consumers to spend on leisure vacations and real estate, both of which are key economic drivers for Hawaii. For more information about Hawaii s economy, please refer to the following websites: Bank of Hawaii - http://www.boh.com/econ/512_539.asp First Hawaiian Bank - http://www.fhb.com/hm_econ.htm University of Hawaii Economic Research Organization - http://www.uhero.hawaii.edu/ Hawaii Department of Business, Economic Development and Tourism - http://hawaii.gov/dbedt/info/economic/data_reports/info/economic/data_reports/qser/outlook-economy
Matson Provides Customers with the Right Equipment at the Right Time I t has always been a tenet of Matson s service to provide customers with the equipment they need, in good condition, whenever they need it, states Rich Kinney, director, equipment and inland operations. We continuously refresh our equipment fleet to ensure it is of the highest quality, and purchase equipment based on the feedback we receive from customers. In addition, we have a team of employees in our Oakland and Phoenix offices who track and manage all our equipment throughout the world to ensure we have the right equipment in the right place to meet our customers demands at all times. Matson has a fleet of approximately 35,000 containers of various lengths, including 26,500 dry containers and 4,000 refrigerated containers, as well as 3,200 flat racks, 900 auto frames and approximately 17,000 chassis. To keep its equipment fleet well-maintained, We always take our customers needs into consideration when purchasing our equipment... We want to make sure our equipment is always best-suited to accomodate whatever our customers need to ship. Rich Kinney, director, equipment and inland operations. the company regularly purchases new equipment. Just in the past five years, Matson has purchased 1,300 reefers, 1,050 flat racks, 14,400 dry containers, 3,800 chassis and 650 motor generators for a total cost of over $100 million. We always take our customers needs into consideration when purchasing new equipment, says Kinney. For instance, our most recent flat rack purchases have incorporated integral nylon straps and winches, which save customers the expense of providing their own nylon or steel straps to secure their cargo. In addition, our flat racks have an increased internal height and a light tare weight, which gives our customers a larger interior dimension to load their cargo and allows them to load more while still meeting the maximum gross weight of state weight laws. We also worked with our livestock shippers to build new livestock containers that have a built-in feeding and watering system and water tanks, as well as extra ventilation and drainage system and 20 windows with standoff bars to keep the livestock safely within the container. We want to make sure our equipment is always best-suited to accommodate whatever our customers need to ship. Beyond providing customers with the right kind of equipment, Matson also works to ensure there is enough available equipment to meet shippers demands. According to Kinney, Matson has 43 equipment depots in the interior of the United States to support intermodal shippers and makes sure there is enough of the right type of equipment in the right place at all times. Our equipment control team often considers the seasonal demands of our shippers when determining equipment needs. For example, the team will place additional reefers in place in the Pacific Northwest for Christmas tree shipments, or 45-foot containers in the interior for the summer household goods season. No matter what customers are shipping, they can rest assured they will have the equipment they need whenever they need it. To learn more about Matson s containers, please visit our website at: http://matson.com/matnav/services/hawaii_equipment.html. Matson has 43 equipment depots in 35 U.S. locations to ensure there is enough equipment in the right place at all times.
Matson and MIL: Experts in Moving Overized Cargo By Land or By Sea F rom moving helicopters, to buses, to entire infantry divisions, Matson and Matson Integrated Logistics (MIL) think outside the box when transporting oversized cargo. Whether for government or commercial shippers, Matson and MIL have proven themselves extremely capable of moving virtually anything, anywhere. As Hawaii and Guam s most experienced conventional cargo carrier, there really is no limit to what we can transport, states Frank Lindsay, Matson s general manager, fleet operations. We have moved many different types of cargo that were too large to fit in a container, or have required a variety of modes of transportation to get from point A to point B. For instance, we recently transported a landing craft from San Diego to Kauai, which required towing it from San Diego to Long A number of 60-foot telephone poles were Beach, carefully loading it into the cargo hold underneath one transported to Kauai by Matson following Hurricane Iniki. of our ships and then towing it to Kauai upon its arrival in Honolulu. In the past, we have also moved construction materials, stage productions, observatory mirrors, buses and boats and heavy machinery. When transporting conventional cargo, we work with customers to carefully coordinate the move according to a well-defined time schedule, whether it be for a one-time shipment or a large project move. MIL provides oversized cargo service either door to door within two mainland United States points, or door to port, where it is then put on a ship for transport outside the mainland U.S. MIL often works with Matson for door to port moves to Hawaii and Guam, and just like Matson, has proven itself As Hawaii and Guam s most experienced conventional cargo carrier, there really is no limit to what we can transport. Frank Lindsay, general manager, fleet operations capable of moving anything, no matter how large, throughout the mainland United States. Our connections with both trucking companies and railroads allow us to offer oversized cargo logistics management through a variety of highway and intermodal rail services, states John Lemieux, MIL s manager, highway services. We will also work with customers to tailor our transportation offerings to best meet their service and cost requirements. In addition to the inland conventional cargo service we provide, through our relationship with Matson, we recently enhanced our conventional cargo service to the Neighbor Islands by adding three lowboy trailers to our equipment fleet in Honolulu. With these trailers, we can now load cargo as high as 13 feet and put them on barges for transport to the Neighbor Islands. When customers work with either Matson or MIL to transport conventional cargo, they will have just one point of contact who will handle all the logistics required in the move, and will keep them informed of the status of their cargo every step of the way. According to Lindsay, the years of experience Matson and MIL has in moving conventional cargo, and their ability to work together on moves is a strong case for why customers should use the companies for oversized cargo transportation. Although oversized cargo oftentimes requires us to get creative as to how we move it, we welcome customers to present us with the challenge. Our many years of experience transporting conventional cargo, both over-the-road or by sea, makes us uniquely qualified to assist customers with whatever their transportation needs might be. For more information about Matson s and MIL s oversized cargo service, please visit Matson s website at: http://www.matson.com/oversizedcargo/index.html
Receives Support from President Obama he, which regulates U.S. commerce in maritime waters between two U.S. ports and requires that carriers maintain a fleet that is U.S.-built and crewed with U.S. citizens, recently received renewed support with the election of Barack Obama as president of the United States. While campaigning, Obama made many statements in support of the, particularly that it is important that the remain in place in order to ensure the integrity of the U.S. Merchant Marine. It s clear to me that America needs a strong and vibrant U.S.-flag Merchant Marine, and that means investing in our maritime workers and infrastructure. It s vital for commerce and our national security it s vital to the American way of life. That is why you can continue to count on me to support the and the continued exclusion of maritime services in international trade agreements. Reliable, Efficient Ocean Transportation Services As an island economy, Hawaii is highly dependent on ocean transportation to bring the state the goods it needs. Residents and businesses must be able to depend on reliable, efficient scheduled ocean transportation services with stable rates and the provides that. According to Phil Grill, vice president, government relations, the ensures that Hawaii enjoys frequent, reliable service to the entire state. As a state completely dependent on ocean transportation, it is particularly important that Hawaii be served by U.S.-flag carriers. carriers such as Matson protect Hawaii s lifeline to and from the Mainland and take special care to ensure the entire state, including Neighbor Island residents and businesses, are well served. This results in lower costs for businesses, as goods arrive on a just-in-time It s clear to me that America needs a strong and vibrant U.S.-flag Merchant Marine, and that means investing in our maritime workers and infrastructure. It s vital for commerce and our national security - it s vital to the American way of life. President Barack Obama T basis in many cases going straight from the ship to the shelf which enables businesses to reduce their inventory costs so they don t have to secure warehouse space to hold their goods. National Security Protection The is also important for protecting national security. Considered the fourth arm of defense, all ships, containers, equipment, terminals, cargo tracking systems and employees who operate these systems are required by contract to be made available to the U.S. military in times of emergency. As the state most dependent on ocean transportation, it is particularly important that Hawaii be served by U.S.-flag carriers with close working relationships with the U.S. government. Securing U.S. Jobs Beyond making sure the state of Hawaii receives reliable ocean transportation services and is protectedduring threats to national security, carriers such as Matson also provide job opportunities to over 300,000 American citizens, as seafarers and in the maritime industry. Protecting the Environment Furthermore, U.S.-flag vessels are held to higher U.S. Coast Guard environmental and safety standards than foreign carriers and are more accountable to the public they serve. In addition to providing jobs for American workers, protecting Hawaii s pristine environment is a high priority for the state s carriers, states Grill. Matson has long been recognized for going beyond environmental compliance in a number of areas. Also, carriers comply with U.S. safety and health laws, ensuring a safe and healthy workplace for American seafarers. We are very pleased that President Obama supports the as it is not only beneficial for the state of Hawaii, but the country as a whole. For more information about the, please visit the Maritime Cabotage Task Force s website at: http://www.mctf.com/.
MatsonLog matsonlog@matson.com Customer Service Matson Navigation Company Phone: 800-4MATSON (800-462-8766) customerservice@matson.com Matson Integrated Logistics Phone: Concord, California: 866-628-7663 Oakbrook Terrace, Illinois: 800-325-0325 websales@matson.com Matson Global Distribution Services Phone: 877-2MATSON (1-877-262-8766) MGDS@matson.com