Matson Dodges $80M in Fees as US and China Postpone Reciprocal Port Fees

Matson, the largest U.S. ocean container carrier and likely the first to have paid China’s special port fees for U.S.-built or operated ships, expects to save as much as $80 million annually after the U.S. and China agreed to postpone their reciprocal fee programs. Despite that, the carrier is seeing significant declines in its ocean revenues and income as customers are expected to remain cautious despite a more stable environment.

The company told investors on Tuesday, November 4, that it believed the business had performed well in a difficult environment, which it said was “marked by continued uncertainty and volatility arising from tariffs and global trade.” Chairman and CEO Matt Cox said the company had experienced a “muted peak season” on its transpacific trade lane with lower freight rates and container volume on its service from China to the U.S.

Matson saw third quarter operating income decline by half overall while warning that it expects a 30 percent decline year-over-year for the fourth quarter. Container volume, it reported, was down 12.8 percent for its China service in the third quarter, and it does not foresee improvements in the rates or volume for its China service in the current quarter.

“We expect many of our China service customers to be cautious on inventory levels and work through previously purchased inventory,” Cox told investors. “However, we expect a more stable trading environment for our customers,” he said, pointing to the agreements between the countries and the reduction of uncertainty. The U.S. and China agreed to reduce some tariffs and port fees, plus he noted the impact on global trade.

Despite the agreements reached during the summit in South Korea, Matson warned investors that its decline in quarterly income would include $6.4 million in port entry fees paid so far this quarter. The U.S. announced earlier this week that the port fees implemented after the USTR investigation into China’s shipbuilding and maritime policies would be suspended as of November 10, following the introduction on October 14.

“Based on our initial assessment of our anticipated fleet schedule, vessel charters, and expected dry dockings, we expected to pay approximately $20 million in port entry fees in the fourth quarter 2025 and approximately $80 million annually in port entry fees in 2026 and 2027,” Cox told investors. He said the company had advised customers that port entry fees would not be passed on.

Cox called the agreements between the U.S. and China a “welcome development” and a “positive step towards a longer-lasting agreement.”

Matson is waiting for the U.S. and China to publish specific instructions regarding port entry fees. The company is waiting to determine whether there will be an element of rebates, allowing it to claw back some of the fees paid starting in mid-October.

Under the Chinese program, Matson was one of the companies expected to incur the largest costs. In the United States, China’s COSCO and its subsidiary OOCL were likely to have incurred the greatest expense. Alphaliner had estimated the fees could cost COSCO $1.53 billion in 2026.