MATSON, INC. ANNOUNCES SECOND QUARTER 2022 RESULTS

HONOLULU, Aug. 1, 2022

"Matson performed well in the second quarter 2022 with higher year-over-year operating income in both Ocean Transportation and Logistics," said Chairman and Chief Executive Officer Matt Cox.  "Within Ocean Transportation, our China service continued to see significant demand for its expedited ocean services as volume for e-commerce, garments and other goods remained elevated.  The increase in consolidated operating income year-over-year was driven by continued strength in the China service.  Currently in the Transpacific tradelane, we are seeing solid demand for our China service as China's factory production continues to recover from the COVID-19-related supply chain challenges.  However, in recent weeks we have seen a gradual decline in the Transpacific freight rate environment off the highs experienced earlier this year.  This indicates that rates have likely peaked for now, and, at this time, we expect an orderly marketplace for the remainder of the year with our vessels continuing to operate at or near capacity and earning a significant rate premium to the market because of our differentiated, fast ocean services.  To this end, we continue to expect to operate the CCX service through the October peak season this year."  

Mr. Cox added, "In our domestic ocean tradelanes, we saw continued strength in Alaska with higher year-over-year volume and softer volumes in Hawaii and Guam compared to the year ago period.  In Logistics, operating income increased year-over-year with strength across all of the business lines as we continued to see favorable supply and demand fundamentals in our core markets."

Second Quarter 2022 Discussion and Update on Business Conditions

Ocean Transportation:  The Company's container volume in the Hawaii service in the second quarter 2022 was 1.5 percent lower year-over-year.  The decrease was primarily due to lower retail-related demand.  During the quarter, we saw continued improvement in the Hawaii economy supported by strong domestic tourist arrivals and a modest improvement in international tourist trends.  In the near-term, we expect continued economic recovery in Hawaii from the pandemic supported by an improving unemployment rate and increasing tourism traffic, but there are negative trends from a combination of economic effects that create uncertainty in the economic growth trajectory.  The negative trends include weakening economic conditions in the U.S. and global economies and lower household discretionary income as a result of high inflation, higher interest rates and the end of the pandemic-era stimulus helping personal income.   

In China, the Company's container volume in the second quarter 2022 increased 11.7 percent year-over-year.  The increase was a result of four more eastbound voyages than the prior year.  Volume demand in the quarter was driven by e‑commerce, garments and other goods.  Matson continued to realize a significant rate premium over the Shanghai Containerized Freight Index in the second quarter 2022 and achieved average freight rates that were considerably higher than in the year ago period.  Currently in the Transpacific tradelane, we are seeing solid demand for our China service as China's factory production continues to recover from the COVID-19-related supply chain challenges.  However, in recent weeks we have seen a gradual decline in the Transpacific freight rate environment off the highs experienced earlier this year.  This indicates that rates have likely peaked for now, and, at this time, we expect an orderly marketplace for the remainder of the year with our vessels continuing to operate at or near capacity and earning a significant rate premium to the market because of our differentiated, fast ocean services.  To this end, we continue to expect to operate the CCX service through the October peak season this year.