Hawai'i consumers can expect to pay more for goods coming in on Matson Navigation Co. ships starting in January.

The state's largest shipper said yesterday it will increase rates on Jan. 4 by $120 per west-bound container and $60 per east-bound container. That's an average rate increase of 3.9 percent, the company said.

The increase is up from annual hikes of 2.5 percent in 2008 and 3.3 percent in 2007. It equals the 3.9 percent increase implemented in 2006.

In addition, Matson also will raise its terminal handling charge by $175 per west-bound container and $90 per east-bound container.

Combined, the increased rates could show up at the supermarket, hardware store and other retail establishments if businesses pass along the higher costs to consumers.

The hike translates into an increase of 13 cents to ship a 20-pound bag of rice to Hawai'i. Shipping costs will go up by six-tenths of a cent for a can of soda, 1.2 cents for a head of lettuce, and 8.3 cents for an 8-foot-long 2-by-4 piece of lumber.

The cost of shipping a vehicle will remain unchanged at about $1,055.

"This rate increase will help offset rises in operating costs and support ongoing investments in our Hawai'i service," said Dave Hoppes, Matson's senior vice president, ocean services.

Since 2003, Matson has invested about $600 million in fleet enhancements, including more than $500 million for construction of four new containerships, Hoppes said. Matson also continues to invest in new container equipment, information technology and terminal facilities, he said.

The increases will be filed with the federal Surface Transportation Board. Matson's terminal handling charge was first implemented in 2003 and is designed to recover a portion of the extraordinary costs associated with the movement of cargo through terminals. This charge is standard in the industry and appears as a separate line item at the bottom of the company's freight bills.

"Terminal handling costs comprise approximately 40 percent of Matson's operating costs," Hoppes said. "Matson continues to absorb most of the costs associated with terminal operations, the majority of which are driven by factors that are outside of our control, but needs to pass on some of the increased expenses to our customers."

The rate increases are separate from Matson's fuel surcharge, which has been declining in recent months.

Matson last week dropped the surcharge for the fifth time in two months in response to declining fuel prices.

Matson cut the surcharge by 5.5 percentage points for its Hawai'i service, to 19.5 percent from 25 percent, and by 5.5 percentage points for its Guam /CNMI and Micronesia service, to 21 percent from 26.5 percent. With this latest adjustment, Matson's fuel surcharge has been trimmed 22.75 percentage points since Sept. 20.

Matson is a wholly owned subsidiary of Alexander & Baldwin Inc. of Honolulu.