Matson to Raise Fuel Surcharge to 3.25%

March 20, 2000

Due to steadily escalating costs in bunker fuel, Matson Navigation Company is increasing its fuel surcharge from 2.25 percent to 3.25 percent in its Hawaii and Guam services, effective April 2, 2000. The fuel surcharge was filed with the Surface Transportation Board today.

"In the past year, fuel costs have more than doubled and reached price levels that are the highest since the Gulf War," Paul E. Stevens, senior vice president, Marketing, says. "While the high cost of fuel has an adverse impact on many businesses, as well as consumers, transportation companies are especially hard hit. This surcharge is necessary to offset some of the costs resulting from the current excessively high fuel prices. We will continue to monitor fuel costs and adjust the surcharge accordingly."

Matson implemented a 1.75 percent fuel surcharge on October 11, 1999. The surcharge was raised to 2.25 percent on February 20, 2000.

Matson Navigation Company is a wholly-owned subsidiary of Alexander & Baldwin, Inc. of Honolulu (NASDAQ: ALEX).

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