Matson - Zone of Reasonableness - 1996 to 2013

1. MATSON, INC. [MATX]
“THE ZONE OF REASONABLENESS”
MARITIME SIGNIFICANCE
A PRESENTATION BY
CLIFTON M. HASEGAWA & ASSOCIATES, LLC

2. PUBLIC LAW 104–88
DECEMBER 29, 1995 109 STAT. 804
INTERSTATE COMMERCE COMMISSION
TERMINATION ACT OF 1995

3. PART B—MOTOR CARRIERS, WATER CARRIERS
BROKERS AND FREIGHT FORWARDERS
CHAPTER 135—JURISDICTION
SUBCHAPTER IV—AUTHORITY TO EXEMPT
§ 13504. Exempt motor carrier transportation entirely in one State
Neither the Secretary nor the Board has jurisdiction under
this subchapter over transportation, except transportation of household
goods, by a motor carrier operating solely within the State of Hawaii.
The State of Hawaii may regulate transportation exempt from
jurisdiction under this section and, to the extent provided by a motor
carrier operating solely within the State of Hawaii, transportation
exempt under section 13503 of this title.
[ Secretary, United States, Department of Transportation - Surface Transportation Board]

4. PART B—MOTOR CARRIERS, WATER CARRIERS
BROKERS AND FREIGHT FORWARDERS
CHAPTER 135—JURISDICTION
SUBCHAPTER IV—AUTHORITY TO EXEMPT
§ 13541. Authority to exempt transportation or services
(f) CONTINUATION OF CERTAIN EXISTING EXEMPTIONS
FOR WATER CARRIERS ---
The Secretary or Board, as applicable, shall not regulate or exercise
jurisdiction under this part over the transportation by water carrier in the
NON-CONTIGUOUS DOMESTIC TRADE of any cargo or type of cargo or
service WHICH WAS NOT SUBJECT TO REGULATION BY, OR UNDER
THE JURISDICTION OF, EITHER THE FEDERAL MARITIME
COMMISSION OR INTERSTATE COMMERCE COMMISSION UNDER
FEDERAL LAW IN EFFECT ON NOVEMBER 1, 1995.

5. NON-CONTIGUOUS DOMESTIC TRADE
The term “noncontiguous domestic trade” means
transportation subject to jurisdiction under chapter
135 involving traffic originating in or destined to
Alaska, Hawaii, or a territory or possession of the
United States.
Title 49 United States Code §13102

6. PART B—MOTOR CARRIERS, WATER CARRIERS
BROKERS AND FREIGHT FORWARDERS
CHAPTER 137 --- RATES AND THROUGH ROUTES
§ 13701. Requirements for reasonable rates, classifications, through routes,
rules, and practices for certain transportation
(d) ZONE OF REASONABLENESS.—
(1) IN GENERAL. — For purposes of this section, a rate or division of a motor
carrier for service in noncontiguous domestic trade or water carrier for port-to-port service in that trade
is reasonable if the aggregate of increases and decreases in any such rate or division is not more than
7.5 percent above, or more than 10 percent below, the rate or division in effect 1 year before the effective
date of the proposed rate or division
(2) ADJUSTMENTS TO THE ZONE. — The percentage specified in paragraph (1)
shall be increased or decreased, as the case may be, by the percentage change in the Producers Price
Index, as published by the Department of Labor, that has occurred during the most recent 1-year period
before the date the rate or division in question first took effect.

7. SURFACE TRANSPORTATION BOARD
CODE OF FEDERAL REGULATIONS
Volume 9
Date: 2011-10-01
Title 49 – Transportation
The provisions of this part DO NOT APPLY to:
(2) The transportation of any cargo or type of cargo or service
which was not subject to regulation by, or under the jurisdiction
of, either the Federal Maritime Commission (FMC) or the
Interstate Commerce Commission under Federal law in effect on
November 1, 1995

8. FEDERAL MARITIME COMMISSION
FEDERAL MARITIME COMMISSION – No. 77-45, 21 F.M.C. 44, 59
(1978)
Hawaii Meat Company v Matson Navigation
“The standard for unreasonableness is set forth by the Commission in
Matson Navigation Company Pallets and Containers Pacific
Coast/Hawaii Trade, 77 F.M.C. 771, 772 (1964) , in which the
Commission stated that it only can disapprove a rate if it finds that the
rate exceeds a just and reasonable figure.”

9. FEDERAL MARITIME COMMISSION
FEDERAL MARITIME COMMISSION – No. 1123, 77 F.M.C. 771, 772
(1964)
Matson Navigation Company Pallets and Containers
Pacific Coast / Hawaii Trade
“… Here as in all such cases coming before this Commission careful
attention has been given to the representations of all parties affected
by the rate increase. With respect to disapproving a rate however
the Commission’s power is strictly limited. It can disapprove only if
it finds that the rate exceeds a just and reasonable figure. A rate
which yields the cost of loading, carrying and delivering the cargo
plus the cargo’s pro rata share of general expense, a moderate
contribution to profit and no more, is certainly a just and reasonable
rate which the Commission is not authorized to disapprove in the
circumstances of this case. With respect to cargo interests who are
hard pressed by just and reasonable rates (and often some are) a
regulatory body finds itself in the position of the Supreme Court in
Matthews v Zane 7 Wheat. 164, 211 (1822) which caused Chief Justice
Marshall to say: “The case of the plaintiff may be and probably is a
hard one but to relieve him is not within the power of this court.”

10. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission: March 27, 1996
In November 1995, Matson filed a 3.8 percent general rate increase for the Hawaii Service that became
effective on January 28, 1996.
The Interstate Commerce Commission Termination Act of 1995 (the "Act"), which took effect on
January 1, 1996, will substantially revise regulation of water common carriers, like Matson, which
operate between the U.S. Mainland and domestic offshore states and territories.
Previously, Matson was regulated by the Federal Maritime Commission ("FMC") with respect to port-to-
port service rates, as well as by the Interstate Commerce Commission ("ICC") to the extent of Matson's
joint rates with motor carriers.
The Act will end bifurcated regulation by the FMC and ICC of water carriers providing service in the
domestic offshore trades. The Act has established within the United States Department of Transportation
a new agency, the Surface Transportation Board ("STB"). The STB will have jurisdiction over both water
carriers and motor carriers providing service in the domestic offshore trades.
Carriers under STB jurisdiction must file rates with the STB and charge only those rates. The Act
establishes a Zone of Reasonableness ("ZOR") which, as adjusted by reference to the Producer Price
Index, will allow annual increases not exceeding 7.5% and rate reductions not exceeding 10%, measured
against the rate in effect one year before the change. Rates which qualify for ZOR treatment are deemed
reasonable and are not subject to investigation or suspension. Rates outside the ZOR also must be
reasonable, but no regulations have been proposed for determining reasonableness.

11. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, March 27, 1997
In December 1996, Matson filed a 3.5% general rate increase for the Hawaii Service that became
effective on February 2, 1997. A 1.75% fuel surcharge will continue in effect while fuel prices remain
high.
The Interstate Commerce Commission Termination Act of 1995 (the "Act"), which took effect on
January 1, 1996, eliminated the Interstate Commerce Commission and transferred jurisdiction over
port-to-port rates in the domestic offshore trades from the Federal Maritime Commission to the Surface
Transportation Board ("STB"), a new agency within the U.S. Department of Transportation. The STB
now has sole jurisdiction over water carriers providing service in the domestic offshore trades.
Carriers under STB jurisdiction must file rates with the STB. The Act establishes a Zone of
Reasonableness ("ZOR") which, as adjusted by reference to the Producer Price Index, will allow annual
increases not exceeding 7.5% and rate reductions not exceeding 10%, measured against the rate in
effect one year before the change. Rates which qualify for ZOR treatment are deemed reasonable and
are not subject to investigation or suspension. Rates outside the ZOR also must be reasonable, but no
regulations have been proposed for determining reasonableness.

12. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 27, 1998
Matson is subject to the jurisdiction of the Surface
Transportation Board ("Board"), an agency within
the U.S. Department of Transportation, with respect
to its domestic rates. The Interstate Commerce
Commission Termination Act of 1995 ("Act")
establishes a "Zone of Reasonableness," as defined
in the Act, within which rate adjustments are
deemed reasonable. Rate adjustments outside of
the Zone of Reasonableness are subject to
investigation and/or suspension by the Board.
In December 1997, Matson announced it would
defer an across-the-board increase in its Hawaii
Service rates in recognition of the weak Hawaii
economy.

13. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 26, 1999
Matson is subject to the jurisdiction of the Surface Transportation Board
("Board"), an agency within the U.S. Department of Transportation, with respect
to its domestic rates.
The Interstate Commerce Commission Termination Act of 1995 ("Act")
establishes a "Zone of Reasonableness," as defined in the Act, within which rate
adjustments are deemed reasonable. Rate adjustments outside of the Zone of
Reasonableness are subject to investigation and/or suspension by the Board.
In December 1998, Matson filed a 2.5 percent across-the-board increase in its
Hawaii Service, effective February 14, 1999.

14. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 27, 2000
Matson is subject to the jurisdiction of the Surface Transportation Board with respect
to its domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate
in effect one year before the effective date of the proposed rate.
Matson filed a 2.5 percent across-the-board increase in its Hawaii Service, which
became effective on February 14, 1999, and a 1.75 percent fuel-cost-related surcharge in
its Hawaii and Guam Services, which became effective on October 11, 1999. A 3.9
percent across-the-board increase in the Hawaii Service became effective February 14,
2000, and an increase in the fuel-cost-related surcharge to 2.25 percent became effective
February 20, 2000.

15. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 26, 2001
Matson is subject to the jurisdiction of the Surface Transportation Board with respect
to its domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate
in effect one year before the effective date of the proposed rate.
Matson filed a 3.9 percent across-the-board increase in its Hawaii Service shipping
rates, which became effective on February 14, 2000. Also in 2000, substantial
increases in bunker fuel costs required Matson on three occasions to file increases in
the fuel surcharge, which rose from 1.75 percent at the beginning of 2000 to 4.25
percent at the end of 2000. A 3.5 percent across-the-board increase in the Hawaii
Service became effective on February 14, 2001.

16. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 11, 2002
Matson is subject to the jurisdiction of the Surface Transportation Board with respect
to its domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate
in effect one year before the effective date of the proposed rate, subject to increase or
decrease by the percentage change in the U.S. Producer Price Index.
Matson filed a 3.5 percent across-the-board increase in its Hawaii Service shipping
rates, which became effective on February 14, 2001. Also in 2001, Matson reduced its
fuel surcharge in its Hawaii and Guam Services by one percentage point, from 4.25
percent to 3.25 percent, effective November 25, 2001.

17. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 10, 2003
Matson is subject to the jurisdiction of the Surface Transportation Board with respect
to its domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate
in effect one year before the effective date of the proposed rate, subject to increase or
decrease by the percentage change in the U.S. Producer Price Index.
Matson filed a 2.75 percent across-the-board increase in its Hawaii Service freight
rates which became effective April 14, 2002, and a three percent across-the-board
increase in its Guam Service freight rates, which became effective October 3, 2002.
Also in 2002, Matson increased its fuel surcharge in its Hawaii Service and Guam
Service from 3.25 percent to 4.75 percent, effective May 5, and from 4.75 percent to 6
percent, effective October 20 in Hawaii and November 9 in Guam. Effective January
12, 2003, Matson implemented, in its Hawaii Service, a terminal handling charge of
$200 per container for westbound freight, $100 per container for eastbound freight
and $30 per automobile. On February 14, 2003, due to dramatic increases in fuel
prices attributed to the increasing likelihood of war in Iraq, Matson announced an
increase in its fuel surcharge from 6 percent to 7.5 percent in the Hawaii and Guam
Services effective March 3, 2003.

18. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 08, 2004
Matson is subject to the jurisdiction of the Surface Transportation Board with respect
to its domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate
in effect one year before the effective date of the proposed rate, subject to increase or
decrease by the percentage change in the U.S. Producer Price Index.
Effective January 12, 2003, Matson imposed a terminal handling charge of $200 per
container for westbound freight, $100 per container for eastbound freight and $30 per
automobile in its Hawaii Service. On June 15, 2003, Matson instituted a $100 per
container U.S. mainland terminal handling charge for cargo moving to and from
Guam. Matson increased its rates in the Hawaii Service by $125 per westbound
container and $60 per eastbound container and increased its terminal handling charge
by $25 per westbound container and $15 per eastbound container, effective January 11,
2004. Matson also increased its rates for moving automobiles by $25, both westbound
and eastbound, and its terminal handling charge for automobiles by $5. Matson's last
general rate increase was in April 2002. No general rate increase was implemented in
2003. Due to dramatic increases in fuel prices attributed to the increasing likelihood
of war in Iraq, Matson increased its fuel surcharge from 6 percent to 7.5 percent
effective March 3, 2003. Matson reduced the fuel surcharge from 7.5 percent to 6.5
percent effective May 4, 2003, and increased it from 6.5 percent to 7.5 percent effective
September 15, 2003.

19. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 08, 2005
Matson is subject to the jurisdiction of the Surface Transportation Board with respect
to its domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate
in effect one year before the effective date of the proposed rate, subject to increase or
decrease by the percentage change in the U.S. Producer Price Index.
Effective January 11, 2004, Matson increased its rates in its Hawaii Service by $125 per
westbound container, $60 per eastbound container, and $25 per vehicle, both
westbound and eastbound, and its terminal handling charge by $25 per westbound
container, $15 per eastbound container and $5 per vehicle. Effective June 6, 2004,
Matson increased its rates in its Guam Service by $125 per container and $5 on items
rated per weight or measure and its West Coast terminal handling charge by $25 per
container, $5 per vehicle and $1 per revenue ton on items rated per weight or measure,
both westbound and eastbound. Due to sustained increases in fuel costs, Matson
increased its fuel surcharge in its Hawaii and Guam Services from 7.5 percent to 8.0
percent, effective March 14, 2004; to 8.8 percent, effective June 21, 2004; and to 9.2
percent, effective October 18, 2004.

20. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 08, 2006
Matson is subject to the jurisdiction of the Surface Transportation Board with respect
to its domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate
in effect one year before the effective date of the proposed rate, subject to increase or
decrease by the percentage change in the U.S. Producer Price Index.
Effective January 3, 2005, Matson increased its rates in its Hawaii Service by $100 per
container and $25 per vehicle, for both westbound and eastbound, and its terminal
handling charge by $40 per westbound container, $20 per eastbound container and $5
per vehicle. Effective August 28, 2005, Matson increased its rates in its Guam Service
by $100 per container, $25 per vehicle and 5 percent on items rated per weight or
measure, and its terminal handling charge by $40 per container, $5 per vehicle and 5
percent on items rated per weight or measure, both westbound and eastbound. Due
to sustained increases in fuel costs, Matson increased its fuel surcharge in its Hawaii
and Guam Services from 9.2 percent to 10.5 percent, effective April 18, 2005; to 11.5
percent, effective July 3, 2005; and to 13 percent, effective October 2, 2005. Matson's
new China Service will be subject to the jurisdiction of the Federal Maritime
Commission ("FMC").
No such zone of reasonableness applies under FMC regulation.

21. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 26, 2007
Matson is subject to the jurisdiction of the Surface Transportation Board with respect to its
domestic rates. A rate in the noncontiguous domestic trade is presumed reasonable and will
not be subject to investigation if the aggregate of increases and decreases is not more than
7.5 percent above, or more than 10 percent below, the rate in effect one year before the
effective date of the proposed rate, subject to increase or decrease by the percentage change
in the U.S. Producer Price Index ("zone of reasonableness").
Effective January 1, 2006, Matson increased its rates in its Hawaii Service by $125 per
westbound container and $75 per eastbound container, and its terminal handling charge by
$60 per westbound container and $30 per eastbound container. Matson also announced
increases to its rates in its Hawaii Service effective January 1, 2007, by $100 per westbound
container and $50 per eastbound container, and its terminal handling charge by $150 per
westbound container and $75 per eastbound container. Due to increases in fuel costs in the
first half of 2006, Matson increased its fuel surcharge in its Hawaii and Guam Services from
13 percent to 15 percent, effective January 1, 2006; to 18.5 percent, effective April 2, 2006;
and to 21.25 percent, effective June 4, 2006. As a result of subsequent declines in fuel costs,
Matson decreased its fuel surcharge to 19.75 percent, effective October 1, 2006, to 18.75
percent, effective November 5, 2006, and to 17.5 percent, effective January 28, 2007. In mid-
February, due to increases in fuel costs, Matson announced an increase in its fuel surcharge
to 19.5 percent, effective March 11, 2007. Matson's new China Service is subject to the
jurisdiction of the Federal Maritime Commission ("FMC").
No such zone of reasonableness applies under FMC regulation.

22. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 28, 2008
Matson is subject to the jurisdiction of the Surface Transportation Board with respect to its
domestic rates. A rate in the noncontiguous domestic trade is presumed reasonable and
will not be subject to investigation if the aggregate of increases and decreases is not more
than 7.5 percent above, or more than 10 percent below, the rate in effect one year before the
effective date of the proposed rate, subject to increase or decrease by the percentage change
in the U.S. Producer Price Index ("zone of reasonableness").
Effective January 1, 2006, Matson increased its rates in its Hawaii Service by $125 per
westbound container and $75 per eastbound container, and its terminal handling charge by
$60 per westbound container and $30 per eastbound container. Matson also announced
increases to its rates in its Hawaii Service effective January 1, 2007, by $100 per westbound
container and $50 per eastbound container, and its terminal handling charge by $150 per
westbound container and $75 per eastbound container. Due to increases in fuel costs in the
first half of 2006, Matson increased its fuel surcharge in its Hawaii and Guam Services from
13 percent to 15 percent, effective January 1, 2006; to 18.5 percent, effective April 2, 2006;
and to 21.25 percent, effective June 4, 2006. As a result of subsequent declines in fuel costs,
Matson decreased its fuel surcharge to 19.75 percent, effective October 1, 2006, to 18.75
percent, effective November 5, 2006, and to 17.5 percent, effective January 28, 2007. In mid-
February, due to increases in fuel costs, Matson announced an increase in its fuel surcharge
to 19.5 percent, effective March 11, 2007. Matson's new China Service is subject to the
jurisdiction of the Federal Maritime Commission ("FMC").
No such zone of reasonableness applies under FMC regulation.

23. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
February 27, 2009
Matson is subject to the jurisdiction of the Surface Transportation Board with respect to its
domestic rates. A rate in the noncontiguous domestic trade is presumed
reasonable and will not be subject to investigation if the aggregate of increases and
decreases is not more than 7.5 percent above, or more than 10 percent below, the rate in
effect one year before the effective date of the proposed rate, subject to increase or decrease
by the percentage change in the U.S. Producer Price Index (“zone of reasonableness”).
Matson raised its rates in its Hawaii and Guam services, effective January 6, 2008 and
January 27, 2008, respectively, by $75 per westbound container and $40 per eastbound
container and its terminal handling charges by $125 per westbound container and $60 per
eastbound container. Increases in bunker fuel prices and other energy-related costs caused
Matson to raise its fuel-related surcharge from 29 percent to 31.5 percent in its Hawaii and
Guam services, effective February 4, 2008; to 33.75 percent in its Hawaii and Guam
services, effective April 6, 2008; to 38.25 percent in its Hawaii service and to 39.75 percent
in its Guam service, effective July 13, 2008; and to 42.25 percent in its Hawaii service and to
43.75 percent in its Guam service, effective August 31, 2008.
(Continued on the following slide)

24. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 27, 2009
(Continuation)
As a result of subsequent declines in bunker fuel prices, Matson decreased its fuel
related surcharge to 37.5 percent in its Hawaii service and to 39 percent in its Guam
service, effective September 21, 2008; to 33 percent in its Hawaii service and to 34.5
percent in its Guam service, effective October 12, 2008; to 27 percent in its Hawaii
service and 28.5 percent in its Guam service, effective October 19, 2008; to 25 percent in
its Hawaii service and to 26.5 percent in its Guam service, effective November 2, 2008; to
19.5 percent in its Hawaii service and to 21 percent in its Guam service, effective
November 16, 2008; and to 15 percent in its Hawaii service and to 16.5 percent in its
Guam service, effective November 30, 2008. Matson raised its rates in its Hawaii service,
effective January 4, 2009, by $120 per westbound container and $60 per eastbound
container and its terminal handling charges by $175 per westbound container and $90
per eastbound container. Matson raised its rates in its Guam service, effective February
1, 2009, by $120 per westbound and eastbound container and its West Coast terminal
handling charge by $175 for westbound and eastbound containers. Effective in March
2009, Matson will implement a new crane surcharge of $125 per container to help
recover costs associated with the purchase and operation of three gantry cranes in the
port of Guam. Matson’s China Service is subject to the jurisdiction of the Federal
Maritime Commission (“FMC”).
No such zone of reasonableness applies under FMC regulation.

25. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 26, 2010
Matson is subject to the jurisdiction of the Surface Transportation Board with respect to its
domestic rates. A rate in the noncontiguous domestic trade is presumed reasonable and will
not be subject to investigation if the aggregate of increases and decreases is not more than 7.5
percent above, or more than 10 percent below, the rate in effect one year before the effective
date of the proposed rate, subject to increase or decrease by the percentage change in the U.S.
Producer Price Index (“zone of reasonableness”).
Matson raised its rates in its Hawaii service, effective January 4, 2009, by $120 per westbound
container and $60 per eastbound container and its terminal handling charges by $175 per
westbound container and $90 per eastbound container. Matson raised its rates in its Guam
service, effective February 1, 2009, by $120 per westbound and eastbound container and its
terminal handling charges by $175 per westbound and eastbound container. Increases in
bunker fuel prices and other energy-related costs caused Matson to raise its fuel-related
surcharge from 15 percent to 16.5 percent in its Hawaii service and from 16.5 percent to 18
percent in its Guam service, effective May 24, 2009; to 20 percent in its Hawaii service and to
21.5 percent in its Guam service, effective June 21, 2009; to 28 percent in its Hawaii service and
to 29.5 percent in its Guam service, effective July 5, 2009. As a result of subsequent declines in
bunker fuel prices, Matson decreased its fuel-related surcharge to 24 percent in its Hawaii
service and to 25.5 percent in its Guam service, effective October 4, 2009.
(Continued on the following slide)

26. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 26, 2010
(Continuation)
Matson raised its rates in its Hawaii service, effective January 3, 2010, by $120 per
westbound container and $60 per eastbound container and its terminal handling charges
by $125 per westbound container and $60 per eastbound container. Matson raised its
rates in its Guam service, effective January 31, 2010, by $120 per westbound and
eastbound container and its West Coast terminal handling charge by $125 for westbound
and eastbound containers. As a result of increasing bunker fuel prices and other fuel-
related costs since its last fuel surcharge adjustment, Matson increased its fuel-related
surcharge to 27.5 percent in its Hawaii service and to 29.0 percent in its Guam service,
effective February 7, 2010. Matson’s China Service is subject to the jurisdiction of the
Federal Maritime Commission (“FMC”).
No such zone of reasonableness applies under FMC regulation.

27. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 25, 2011
Matson is subject to the jurisdiction of the Surface Transportation Board with respect to
its domestic rates. A rate in the noncontiguous domestic trade is presumed reasonable
and will not be subject to investigation if the aggregate of increases and decreases is not
more than 7.5 percent above, or more than 10 percent below, the rate in effect one year
before the effective date of the proposed rate, subject to increase or decrease by the
percentage change in the U.S. Producer Price Index (“zone of reasonableness”).
Matson raised its rates in its Hawaii service, effective January 3, 2010, by $120 per
westbound container and $60 per eastbound container and its terminal handling charges
by $125 per westbound container and $60 per eastbound container. Matson raised its
rates in its Guam service, effective January 31, 2010, by $120 per westbound and
eastbound container and its terminal handling charges by $125 per westbound and
eastbound container. Increases in bunker fuel prices and other energy-related costs
caused Matson to raise its fuel-related surcharge from 24 percent to 27.5 percent in its
Hawaii service and from 25.5 percent to 29 percent in its Guam service, effective
February 7, 2010.
(Continued on the following slide)

28. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 25, 2011
(Continuation)
As a result of subsequent declines in bunker fuel prices, Matson decreased its fuel-
related surcharge to 25.5 percent in its Hawaii service and to 27 percent in its Guam
service, effective July 18, 2010. Matson again decreased its fuel-related surcharge to
21.75 percent in its Hawaii service and to 23.25 percent in its Guam service, effective
September 12, 2010. Matson raised its rates in its Hawaii service, effective January 2,
2011, by $120 per westbound container and $60 per eastbound container and its
terminal handling charges by $175 per westbound container and $85 per eastbound
container. Matson raised its rates in its Guam service, effective January 30, 2011, by
$120 per westbound and eastbound container and its West Coast terminal handling
charge by $175 for westbound and eastbound containers. Matson’s China Service is
subject to the jurisdiction of the Federal Maritime Commission (“FMC”).
No such zone of reasonableness applies under FMC regulation.

29. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 28, 2012
Matson is subject to the jurisdiction of the Surface Transportation Board with respect to its
domestic rates. A rate in the noncontiguous domestic trade is presumed reasonable and
will not be subject to investigation if the aggregate of increases and decreases is not more
than 7.5 percent above, or more than 10 percent below, the rate in effect one year before the
effective date of the proposed rate, subject to increase or decrease by the percentage change
in the U.S. Producer Price Index (“zone of reasonableness”).
Matson raised its rates in its Hawaii service, effective January 2, 2011, by $120 per
westbound container and $60 per eastbound container and its terminal handling charges
by $175 per westbound container and $85 per eastbound container.
Matson raised its rates in its Guam service, effective January 30, 2011, by $120 per
westbound and eastbound container and its terminal handling charges by $175 per
westbound and eastbound container.
(Continued on the following slides, 2 and 3)

30. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 28, 2012
(Continuation, Slide 2)
Rising fuel-related costs caused Matson to raise its fuel-related surcharge from 21.75
percent to 26.5 percent in its Hawaii service and from 23.25 percent to 28 percent in its
Guam service, effective February 27, 2011. Dramatic increases in fuel costs caused
Matson to raise its fuel-related surcharge to 35 percent in its Hawaii service and 36.5
percent in its Guam service, effective March 27, 2011. As a result of the sustained
surge in fuel prices, Matson raised its fuel-related surcharge to 43.5 percent in its
Hawaii service and 45 percent in its Guam service, effective May 1, 2011. Due to
sustained near record high fuel prices, Matson raised its fuel-related surcharge to 47.5
percent in its Hawaii service and 49 percent in its Guam service, effective June 12,
2011. As a result of subsequent declines in bunker fuel prices, Matson decreased its
fuel-related surcharge to 45.5 percent in its Hawaii service and to 47 percent in its
Guam service, effective August 28, 2011. Matson again decreased its fuel-related
surcharge to 42.5 percent in its Hawaii service and to 44 percent in its Guam service,
effective September 25, 2011. Matson further decreased its fuel-related surcharge to
40.5 percent in its Hawaii service and 42 percent in its Guam service, effective October
9, 2011.

31. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission, February 28, 2012
(Continuation, Slide 3)
Matson raised its rates in its Hawaii service, effective January 1, 2012, by $175 per
westbound container and $85 per eastbound container and its terminal handling charges
by $50 per westbound container and $25 per eastbound container.
As a result of rising bunker fuel prices and other energy related costs, Matson increased its
fuel-related surcharge to 45.5 percent in its Hawaii service, effective February 26, 2012.
Matson’s China Service is subject to the jurisdiction of the Federal Maritime Commission
(“FMC”).
No such zone of reasonableness applies under FMC regulation.

32. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 1, 2013
Matson is subject to the jurisdiction of the Surface Transportation Board with respect to
its domestic rates. A rate in the noncontiguous domestic trade is presumed reasonable
and will not be subject to investigation if the aggregate of increases and decreases is not
more than 7.5 percent above, or more than 10 percent below, the rate in effect one year
before the effective date of the proposed rate, subject to increase or decrease by the
percentage change in the U.S. Producer Price Index (“zone of reasonableness”).
Matson raised its rates in its Hawaii service, effective January 1, 2012 and again January
1, 2013, by $175 per westbound container and $85 per eastbound container and its
terminal handling charges by $50 per westbound container and $25 per eastbound
container. Matson did not implement a general rate increase in its Guam Service in 2012
or 2013 but did raise the Guam terminal handling charge in both years. Rising fuel-
related costs caused Matson to raise its fuel-related surcharge from 40.5 percent to 45.5
percent in its Hawaii service effective February 26, 2012.
(Continued on the following slide)

33. MATSON Form 10-K Annual Report.
Filed with the US Securities and Exchange Commission,
March 1, 2013
(Continuation)
Because of increasing container volume related to the recent exit of a key competitor,
Matson did not increase its fuel-related surcharge for its Guam Service at that time,
keeping it at 42.0 percent.
Declines in fuel costs caused Matson to reduce its fuel-related surcharge to 42.0 percent in
its Hawaii service and 38.5 percent in its Guam service, effective June 17, 2012. Declines in
fuel costs continued, and Matson further reduced its fuel-related surcharge to 39.0 percent
in its Hawaii service and to 35.5 percent in its Guam service, effective July 15, 2012. After
that, fuel prices and fuel-related costs began rising substantially, and Matson raised its
fuel-related surcharge to 43.5 percent in its Hawaii service and 40.0 percent in its Guam
service, effective October 7, 2012. Matson’s China Service is subject to the jurisdiction of
the Federal Maritime Commission (“FMC”).
No such zone of reasonableness applies under FMC regulation.

34. FEDERAL MARITIME COMMISSION
Matson Navigation Company
Pallets and Containers
Pacific Coast / Hawaii Trade
77 F.M.C. 771 (1964), pages 776 and 778
Probably the future is not as bright as pictured by Matson and it seems sure that it
not as bleak as indicated by PGAH. If it were the latter Matson would hardly name
a rate which would kill the goose that lays the golden eggs and the State of Hawaii
which is fully advised in the matter but takes no position would undoubtedly be
loud in opposition to the rate …
Both Pallets and PGAH understandably complain of cavalier treatment of pallet
cargo by Matson in the past. Such treatment was not denied by Matson but
certainly under the increased rate it should disappear and pallet cargo should
receive first class service at all times.