Dear Valued Customer,

Matson Navigation Company (Matson) has decided to reduce it's Fuel Surcharge in the Hawaii ocean carriage trade by 3.75 percentage points from 25.5% to 21.75%. This reduction applies to shipments moving between the continental United States and Hawaii, effective with sailings on or after September 12, 2010.

The Fuel Surcharge in the Guam/CNM trade will also see a reduction of 3.75 percentage points from 27% to 23.25%. This adjustment applies to shipments moving between the continental United States or Hawaii to/from Guam, effective with sailings on or after September 12, 2010.

Horizon Lines has not announced what they will do with respect to the ocean fuel surcharges, if anything. However, we believe they will ultimately match Matson's rates in order to remain competitive in the marketplace.

We will continue to adjust our fuel surcharge as the underlying ocean carriers change theirs.

If you have any questions regarding the above announcement, please contact your local sales representative or call our Corporate Customer Service at 800-488-4888, Ext. 2020 or email us at custsrv@dhx.com.