Matson, Inc., a company based in Honolulu, reported that it incurred $6.4 million in port entry fees during the first three weeks when the U.S. and China imposed mutual charges on each other's ships before reaching a suspension deal.
These fees began on October 14, when both countries took actions against each other’s shipping. China's measures were described as "retaliatory countermeasures targeting U.S.-linked ships" to match U.S. port charges.
The situation was quickly resolved on October 30, when Presidents Trump and Xi Jinping announced a trade agreement, with the suspension of charges taking effect on November 10.
Matson provides two fast shipping services from China to the U.S.: the China – Long Beach Express (CLX) and the Matson Asia Express (MAX).
By November 4, Matson had reported accumulating $6.4 million in fees over this nearly three-week period.
In its third-quarter earnings report released on November 4, Matson reported a net income of $134.7 million, or $4.24 per diluted share, which is down from $199.1 million during the same period last year. Consolidated revenue also dropped to $880.1 million from $962.0 million year-over-year.
Chairman and CEO Matt Cox recognized the challenging business conditions and said that "Matson’s Ocean Transportation and Logistics segments performed well despite the ongoing uncertainty and volatility from tariffs and global trade."
The company's services to China were significantly affected, with a 12.8 percent decline in container volume year-over-year in the third quarter. Cox pointed out that "the Transpacific tradelane saw a quieter peak season compared to last year when businesses rushed to ship cargo ahead of U.S. tariff deadlines."
Looking ahead to the fourth quarter, Cox expressed optimism for "a more stable trading environment for our customers" due to decreased uncertainty around tariffs, port fees, and global trade thanks to the recent trade agreement between the U.S. and China.
However, Matson predicts that its operating income for the fourth quarter of 2025 will be about 30 percent lower than the $147.5 million reported in the fourth quarter of 2024. The company expects its China service customers to "be cautious with inventory levels and manage previous purchases" in the short term.
The one-year suspension of port fees agreed upon by both countries is a temporary solution, leaving questions about what will happen when the suspension ends in November 2026.
The expected impact on Chinese carriers is predicted to be much worse. According to HSBC forecasts, COSCO could face around $1.5 billion in annual port fees, which would account for 74 percent of its projected operating profit for 2026. Orient Overseas Container Line is projected to incur about $654 million in fees, which represents 65 percent of its estimated earnings.