According to foreign media reports, American shipping company Matson has become one of the latest batch of companies to benefit from the US-China trade détente agreement. As the US and China reached an agreement to suspend port fees for one year, Matson, which originally expected to pay up to $80 million in fees each in 2026 and 2027, has temporarily been relieved of this financial burden.
Matson CEO Matt Cox stated at an analyst meeting that the company had originally planned to bear $20 million in port fees in the fourth quarter of this year alone, but after the agreement was reached, the actual expenditure was only $6.4 million. “We will not let these fees affect our China route services,” Cox emphasized. “Our CLX and MAX express services are operating as usual, and we will not pass on any port fees to customers.”
In October this year, China’s Ministry of Transport issued the “Announcement on Collecting Special Port Fees on US Vessels,” formally launching a countermeasure against the port service fees imposed by the US on Chinese shipowners and operators, as well as operators using Chinese-built vessels.
As a result, Matson became one of the most directly affected American shipping companies. The company uses US-built vessels and has long operated express shipping services between China and the US, making it one of the few US shipowners with strong capacity on this route.
When asked whether the already paid $6.4 million in port fees would be refunded, Cox stated that the company is awaiting further clarification and guidance from the regulatory authorities of both China and the US.
Amid this turning point in trade policy, Matson also released its third-quarter financial report. The company’s net profit for the quarter was $135 million, down by approximately one-third from $199 million in the same period last year. Revenue also decreased to $880 million from $962 million in the same period last year. The cumulative net profit for the first three quarters was $302 million, lower than the $348 million in the same period last year.
The main reason for the decline in performance was the simultaneous weakening of both cargo volume and freight rates on the China route. The company disclosed that container volume on the China route in the third quarter decreased by 12.8% year-on-year, and average freight rates also declined. Cox pointed out that due to ongoing uncertainty in tariff policies and the global trade environment, weak demand has continued into the fourth quarter.
“The trans-Pacific market had a muted peak season performance this year,” Cox explained. “Many companies shipped their goods early at the end of Q2 and the beginning of Q3 to avoid tariff risks in advance, leading to a decrease in demand for express services in Q3.”
Despite facing dual pressures on profits and freight rates, Cox believes that the latest US-China trade and economic agreement will bring some stability to the market. He expects that the operating profit of the company’s shipping business in the fourth quarter will still be lower than the same period last year, but the overall market environment is expected to gradually stabilize.
“We anticipate that China route customers will maintain a cautious inventory strategy in the fourth quarter, continuing to digest previously purchased goods,” Cox said. “However, with the US and China reaching an agreement, uncertainties regarding tariffs, port fees, global trade, and geopolitics have significantly decreased. We believe our customers’ operating environment will become more stable.
