The steady rise in fuel prices continues to boost the cost of shipping everything from lettuce to lumber to Hawai'i.

Matson Navigation Co., the state's largest ocean cargo carrier, yesterday announced it would increase its latest fuel surcharge even higher than originally proposed.

In October, Matson said that it would raise the fuel surcharge from 24 percent to 26 percent effective Dec. 2. But with world oil prices hitting record levels, Matson said it will increase the surcharge to 29 percent and delay implementing the hike until Dec. 14.

The 5 percentage-point hike is the largest single increase since the latest round of fuel surcharges began in 1999.

Last month, competitor Horizon Lines announced that it was raising its fuel surcharge by 1 percentage point to 25 percent effective this past Sunday.

Matson spokesman Jeff Hull said the company postponed the original increase because it realized the 26 percent wouldn't have covered costs.

"Instead of hitting our customers twice with a 2 percent and having to follow up a few weeks later with a 3 percent, we're just going to do one at 5 percent on Dec. 14," Hull said.

The higher shipping costs likely will affect the prices Hawai'i residents pay for everyday goods. A 20-pound bag of rice, for example, will cost 3.9 cents more to ship and a head of lettuce nearly a penny more. And it will cost an additional 2.7 cents to ship an 8-foot-long 2-by-4 piece of wood.

Dave Hoppes, Matson senior vice president, ocean services, said the increase is "driven entirely by unprecedented demands for oil in the world market." He said Matson's fuel costs have risen more than 36 percent since the last fuel surcharge increase was announced and he cautioned that additional increases are likely.

"The recent spikes have been unusually dramatic and we recognize the impact they have on our customers and consumers in general," Hoppes said. "Unfortunately, the costs are unavoidable and outside Matson's control. ... If fuel costs remain at this extraordinary level, it will be necessary for Matson to take another increase in January."

Reach Curtis Lum at culum@honoluluadvertiser.com.