What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-25 compared with 2021-02-26 · 134 added, 111 removed, 291 unchanged (46% of the section changed)

2 unchanged sentences

The Company consists of two segments, Ocean Transportation and Logistics.

For financial information by segment for the three years ended December 31, 2020, see Note 3 to the Consolidated Financial Statements in Item 8 of Part II below.

Ocean Transportation:

2 unchanged sentences

Founded in 1882, MatNav provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia.

MatNav also operates two premium, expedited services from China to Long Beach, California, and provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia.

MatNav also operates premium, expedited services primarily from China to Long Beach, California, and provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor, Alaska to Asia.

In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav and other ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and in the Alaska locations of Anchorage, Kodiak and Dutch Harbor.

Matson has a 35 percent ownership interest in SSA Terminals, LLC, a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc.

SSAT currently provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S.

SSAT currently provides terminal and stevedoring services to various carriers at eight terminal facilities on the U.S.

West Coast, including three facilities dedicated for MatNav’s use.

2 unchanged sentences

(“Matson Logistics”), a wholly-owned subsidiary of MatNav.

Established in 1987, Matson Logistics is an asset-light business that provides a variety of logistics services to its customers including:

Established in 1987, Matson Logistics extends the geographic reach of Matson’s transportation network throughout North America and Asia, and is an asset-light business that provides a variety of logistics services to its customers including:

(i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively, “Transportation Brokerage” services);

(ii) less-than-container load (“LCL”) consolidation and freight forwarding services (collectively, “Freight Forwarding” services);

(iii) warehousing and distribution services;

(iii) warehousing, trans-loading, value-added packaging and distribution services (collectively, “Warehousing” services);

and (iv) supply chain management, non-vessel operating common carrier (“NVOCC”) freight forwarding and other services.

18 unchanged sentences

West Coast and Hawaii.

Westbound cargo carried by Matson to Hawaii includes dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, retail merchandise, building materials, automobiles and household goods.

Westbound cargo carried by Matson to Hawaii includes dry containers of mixed commodities, refrigerated commodities, food and beverages, retail merchandise, building materials, automobiles and household goods.

Matson’s eastbound cargo from Hawaii includes automobiles, household goods, dry containers of mixed commodities and livestock.

3 unchanged sentences

The vessels continue to Ningbo and Shanghai, China, where they are loaded with cargo to be discharged primarily in Long Beach, California at a Matson-exclusive terminal operated by SSAT.

These vessels also carry cargo destined for Hawaii which originated in Guam, Micronesia, Japan and China.

Matson provides container transshipment services from many locations in Asia including Hong Kong and Xiamen, China to the U.S.

via the ports of Ningbo and Shanghai, China.

In May 2020, as a result of increased market demand, Matson launched its new China-Long Beach Express Plus (“CLX+”) service.

CLX+ vessels operate as a second weekly vessel from China to Long Beach, California, operating back-to-back with the CLX vessels, which together represent Matson’s expedited China service.

Eastbound cargo from China to Long Beach, California consists mainly of garments, e- commerce, consumer electronics, footwear and other merchandise.

On our CLX service, westbound cargo to China and other destinations in Asia consists mainly of recycling materials.

These vessels also carry cargo destined for Hawaii which originated in Guam, Micronesia, Okinawa, China and other Asian countries.

Matson provides container transshipment services from many locations in Asia including Hong Kong and Xiamen, China to the United States via the ports of Ningbo and Shanghai, China.

In May 2020, as a result of increased market demand, Matson launched its second expedited service to the U.S.

West Coast with the China-Long Beach Express Plus (“CLX+”) service.

The CLX+ service uses chartered vessels and operates weekly from Ningbo and Shanghai, China where they are loaded with cargo to be discharged primarily at Long Beach, California, calling at an SSAT operated terminal.

In July 2021, Matson launched a temporary, third expedited service to the U.S.

West Coast with the China-California Express (“CCX”) service to meet continued high market demand.

The CCX service uses Matson-owned vessels and departs Shanghai, China every three out of five weeks with direct service to Oakland, California and then to Long Beach, California.

Cargo at both Oakland and Long Beach, California, is discharged at Matson exclusive terminals operated by SSAT.

Matson expects the CCX service to operate through the October peak season of 2022 .

Matson’s expedited China service currently consists of the CLX, CLX+ and the CCX services.

Eastbound cargo from China to Long Beach, California consists mainly of garments, e-commerce related goods, consumer electronics, footwear and other merchandise.

Guam Service:

Matson’s Guam service provides weekly carriage between the U.S West Coast and Guam, as part of its CLX service.

Matson’s Guam service provides weekly carriage between the U.S.

West Coast and Guam, as part of its CLX service.

Matson also provides weekly connecting service from Guam to the Commonwealth of the Northern Mariana Islands.

2 unchanged sentences

Matson’s Japan service provides carriage to the port of Naha in Okinawa, Japan, as part of its CLX service.

This service carries mainly general sustenance cargo and household goods supporting the U.S.

This service mainly carries general sustenance cargo and household goods supporting the U.S.

Micronesia Service:

3 unchanged sentences

Alaska Service:

Matson’s Alaska service provides ocean carriage (lift-on/lift-off and conventional services) between the port of Tacoma, Washington, and the ports of Anchorage, Kodiak and Dutch Harbor, Alaska.

Matson also provides a barge service between Dutch Harbor and Akutan in Alaska, and transportation services to other locations in Alaska including the Kenai Peninsula, Fairbanks and the North Slope.

Northbound cargo to Alaska consists mainly of dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, retail merchandise, household goods and automobiles.

Matson’s Alaska service provides ocean carriage between the port of Tacoma, Washington, and the ports of Anchorage, Kodiak and Dutch Harbor, Alaska.

Matson also provides a barge service between Dutch Harbor and

Akutan in Alaska, and transportation services to other locations in Alaska including the Kenai Peninsula, Fairbanks and the North Slope.

Northbound cargo to Alaska consists mainly of dry containers of mixed commodities, refrigerated commodities, foods and beverages, retail merchandise, household goods and automobiles.

Southbound cargo from Alaska primarily consists of seafood, household goods and automobiles.

In September 2020, Matson launched its new Alaska-Asia Express (“AAX”) service that provides carriage of dry and frozen seafood from Dutch Harbor, Alaska to Ningbo and Shanghai, China.

In September 2020, Matson launched its Alaska-Asia Express (“AAX”) service that provides carriage of dry and frozen seafood from Dutch Harbor, Alaska to Ningbo and Shanghai, China.

The AAX service utilizes CLX+ vessels on their westbound trip to China.

Matson also provides transshipment services from Ningbo and Shanghai, China to other locations in Asia.

Other Alaska cargo may be shipped on the AAX service utilizing Matson’s Alaska vessels and transshipment services in Dutch Harbor.

South Pacific Service:

9 unchanged sentences

Cargo destined for Hawaii or Washington is further transshipped in Oakland, California for delivery to its final destination.

In June 2021, Matson launched its new China-Auckland Express (“CAX”) service that operates from Shanghai, China to Auckland, New Zealand to meet increased demand from China.

The CAX service departs Shanghai every two out of five weeks and transports cargo consisting mainly of garments, e-commerce related goods, consumer electronics, footwear and other merchandise.

Terminal and Other Related Services:

1 unchanged sentence

and in the Alaska terminal locations of Anchorage, Kodiak and Dutch Harbor.

SSAT currently provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S.

SSAT currently provides terminal and stevedoring services to various carriers at eight terminal facilities on the U.S.

West Coast, including three facilities dedicated for MatNav’s use, in Long Beach and Oakland, California;

9 unchanged sentences

The majority of Matson’s owned vessels are U.S.

flagged and Jones Act qualified vessels,

and operate in the Hawaii, China, Guam, Japan, Micronesia and Alaska services.

flagged and Jones Act qualified vessels, and operate in the Hawaii, China, Guam, Japan, Micronesia and Alaska services.

Details of Matson’s active and reserve vessels as of December 31, 2021 are as follows:

3 unchanged sentences

KAIMANA HILA (4)

MAHIMAHI (4)(9)

MANULANI (4)(9)

2 unchanged sentences

PFEIFFER (4)(9)

MAUNALEI (4)(9)

MATSON KODIAK (4)(9)

2 unchanged sentences

KAMOKUIKI (5)

ISLAND CHIEF (5)

Vessels-Chartered:

CO OSAKA (5)(9)

MATSON HAWAII (6)

NAVIOS FELICITAS (6)(10)

NAVIOS AMARANTH (5)(9)

NAVIOS VERANO (5)(9)

THANASIS (5)(9)

BOMAR BELLINI (5)(9)

MAUNALEI (3)(8)

MATSON LANAI (6)

MATSON MAUI (6)(10)

February 2026

MATSON KAUAI (6)

MATSON OAHU (6)

MATSON MOLOKAI (6)

MATSON NIIHAU (6)

Barges-Owned:

MAUNA LOA (4)(7)

HALEAKALA (4)(8)

WAIALEALE (3)(7)

Barges-Chartered:

MAUNA LOA (3)

ILIULIUK BAY (4)(8)

December 2022

(1) Twenty-foot Equivalent Units (“TEU”) is a standard measure of cargo volume correlated to a standard 20-foot dry cargo container.

(2) Vessel Design Speed may vary from the operating speed of the vessel.

(3) Charter expiration date represents the approximate earliest month the vessel can be returned to its owner.

Some vessel charter agreements include options to further extend the charter period.

flagged and Jones Act qualified vessel or barge.

1 unchanged sentence

(6) Foreign flagged vessel.

(7) Flat-deck barge.

(8) Lift-on/lift-off barge equipped with a crane.

(7) Roll-on/roll-off barge.

(9) Vessel installed with exhaust gas cleaning systems (commonly referred to as “scrubbers”).

(9) Vessels used in the CLX+ service are chartered and may be replaced by other similar vessels.

Fleet Renewal Program:

Matson has completed its investment of $1,024 million in the construction of four new vessels, including owner’s items and capitalized interest.

The two Aloha Class containerships, Daniel K.

Inouye and Kaimana Hila , commenced active service in November 2018 and April 2019, respectively.

The two Kanaloa Class combination container and roll-on/roll-off vessels, Lurline and Matsonia commenced active service in January 2020 and December 2020, respectively.

(10) Navios Felicitas was returned to its owner in January 2022 and replaced by Matson Maui , which was placed into service in February 2022.

Matson is constructing a new U.S.

flagged and Jones Act qualifying flat-deck barge at a cost of approximately $25.0 million for operation within its Hawaii neighbor island service.

The new barge is expected to be delivered in the first half of 2022.

Vessel Emission Regulations:

1 unchanged sentence

Matson’s vessels transit through some of the most environmentally sensitive areas in the United States including the Hawaiian Islands and the coasts of California, Oregon, Washington and Alaska.

Matson is focused in particular on reducing transportation emissions, including carbon dioxide, nitrous oxide, particulate matter and sulfur dioxide through improvements in vessel fuel consumption and the development of more fuel-efficient transportation solutions.

Matson is focused in particular on reducing transportation emissions, including carbon dioxide, nitrous oxide, particulate matter and sulfur dioxide through improvements in vessel fuel consumption, choice of fuel types and the development of more fuel-efficient transportation solutions.

Matson further contributes positively to the environment by testing and deploying leading technologies as the fleet is modernized.

3 unchanged sentences

There are three main options for a vessel to meet the IMO 2020 requirements:

(1) burn low sulfur fuel oil (“LSFO”), (2) install exhaust gas cleaning systems (commonly referred to as “scrubbers”) on vessels to reduce sulfur emissions from high sulfur fuel oil (“HSFO”), or (3) switch to lower emission fuels such as liquefied natural gas (“LNG”), which requires converting existing vessels or constructing new vessels with LNG-compatible engines and fuel tanks.

(1) burn low sulfur fuel oil (“LSFO”), (2) install exhaust gas cleaning systems (commonly referred to as “scrubbers”) on vessels to reduce sulfur emissions from heavy fuel oil (“HFO”), or (3) switch to lower emission fuels such as liquefied natural gas (“LNG”), which requires converting existing vessels or constructing new vessels with LNG-capable engines and fuel tanks.

With respect to North America, all waters, with certain limited exceptions, within 200 nautical miles of U.S.

4 unchanged sentences

Environmental Protection Agency under the Vessel General Permit regulations have reduced the fuel oil maximum sulfur content to ≤0.1 percent within 24 miles of the California coastline and within Puget Sound.

All of Matson’s vessels in the Alaska and Hawaii services are operating in compliance with IMO 2020 and ECA regulations as applicable, and can use LSFO.

In the Alaska and Hawaii services, Matson installed scrubbers on nine diesel-powered vessels to allow them to use HSFO and still comply with IMO 2020 and ECA regulations.

Matson also maintains two reserve vessels which may operate as dry-dock relief or for emergency activation purposes under an approved ECA permit enabling the use of fuel oil with a maximum sulfur content of ≤0.5 percent within the North America ECA.

Matson’s new Aloha and Kanaloa Class vessels burn compliant LSFO.

These new vessels are also equipped with dual-fuel engines and can be converted to run on LNG.

All of Matson’s vessels in the Alaska and Hawaii services are designed to operate in compliance with IMO 2020 and ECA regulations as applicable, and can use LSFO.

In the Alaska and Hawaii services, Matson installed scrubbers on ten diesel engine-powered vessels to allow them to use HFO and still comply with IMO 2020 and ECA regulations.

Matson also maintains vessels which may operate as dry-dock relief or for emergency activation purposes under an EPA approved ECA permit enabling the use of fuel oil with a maximum sulfur content of ≤0.5 percent within the North America ECA or at any time on IMO compliant fuels.

Matson’s Aloha and Kanaloa Class vessels burn compliant LSFO.

These vessels are also equipped with dual-fuel engines and can be converted to run on LNG.

All of Matson’s other vessels use LSFO to meet IMO 2020 and ECA emission standards.

In June 2021, the IMO adopted new greenhouse gas (“GHG”) emission requirements applicable to ships.

Beginning with a company’s first annual, intermediate or renewal survey for an international air pollution prevention certificate on or after January 1, 2023, all containerships with more than 10,000 dead weight tons will be required to meet specified Energy Efficiency Existing Ship Index (“EEXI”) levels.

EEXI is a one-time certification measuring a ship’s theoretical carbon dioxide (CO 2 ) emissions per transport work based on its design parameters.

After 2023, containerships with over 5,000 gross tonnage (“GT”) will be required to meet annual Carbon Intensity Indicator (“CII”) requirements that become increasingly stringent towards 2030.

CII measures how efficiently a ship transports goods, and uses actual CO 2 emissions to determine an annual rating from A to E.

For ships that achieve a D rating for three consecutive years or an E rating in a single year, a corrective action plan needs to be developed as part of the vessels’ Ship Energy Efficiency Management Plan (“SEEMP”) and approved.

For a discussion on the Company’s planned future capital expenditures to comply with these regulations, see Part II, Item 7 of this Form 10-K.

For more information on Matson’s environmental stewardship initiatives, including GHG emission reduction goals, see Matson’s Sustainability Report and other information available at www.matson.com/sustainability.

Hawaii Terminal Modernization and Expansion Program:

Matson has completed the first phase of modernizing and renovating its terminal facility at Sand Island, Honolulu, Hawaii, an investment of approximately $60 million.

In 2020, Matson completed the installation of three new 65 long- ton capacity gantry cranes, upgraded and renovated three existing cranes, demolished four outdated cranes, and installed upgrades to the electrical infrastructure at the terminal.

As part of the second phase, Matson expects to install a new redundant main switchgear, complete the augmentation of its existing backup power generators, install new fuel storage tanks and a battery energy storage system, and perform other upgrades at the terminal.

Matson expects to begin the second phase during the second half of 2021 and to complete it within two years.

The final phase is expected to begin in 2024 as part of a broader terminal expansion and modernization program at the terminal.

During 2020, Matson completed the first phase of its program to modernize and renovate its terminal facility at Sand Island, Honolulu, Hawaii.

As part of this phase, Matson completed the installation of three new 65 long- ton capacity gantry cranes, upgraded and renovated three existing cranes, demolished four outdated cranes, and installed upgrades to the electrical infrastructure at the terminal.

During 2021, as part of the second phase, Matson completed the installation, energization and transition to a new redundant main switchgear.

Additional projects for this phase relate to improvements to its existing backup power

generators, installation of new above ground fuel storage tanks, a battery energy storage system, and other upgrades at the terminal, and are expected to be completed within the next three years.

The next phase represents a broader and long-term terminal expansion program at the Sand Island terminal facility.

Matson expects to expand into Pier 51A and portions of Pier 51B after Pasha Hawaii (“Pasha”) relocates to the newly constructed Kapalama container terminal facility planned for 2024.

From 2022 to 2024, Matson will be performing surveying, planning and design work in preparation for this expansion.

Ocean Transportation Equipment:

13 unchanged sentences

Matson’s Hawaii service has one major U.S.

flagged Jones Act competitor, Pasha Hawaii (“Pasha”), which operates container and roll-on/roll-off services between the ports of Long Beach, Oakland and San Diego, California to Hawaii.

flagged Jones Act competitor, Pasha, which operates container and roll-on/roll-off services between the ports of Long Beach, Oakland and San Diego, California to Hawaii.

flagged Jones Act barge operator, Aloha Marine Lines, also offers barge service between the Pacific Northwest and Hawaii.

1 unchanged sentence

locations also provide alternatives for companies shipping to Hawaii.

Other competitors in the Hawaii service include proprietary operators and contract carriers of bulk cargo.

Airfreight competition for time-sensitive cargo exists;

however, cargo volume has been limited primarily due to the cost of airfreight transportation.

Other competitors in the Hawaii service include proprietary operators and contract carriers of bulk cargo, and airfreight freight carriers.

Matson operates three strings of vessels to Hawaii.

2 unchanged sentences

Each of these strings operates on a fixed day-of-the-week schedule.

One of the vessel strings continues from Honolulu on to Guam, Japan and China before returning to Long Beach.

The remaining two strings offer eastbound Hawaii shippers twice weekly departures from Honolulu to the U.S.

Mainland, providing customers service to the same three U.S.

West Coast ports.

Two of the vessel strings continue from Honolulu to China before returning to Long Beach.

Matson’s frequent sailings and punctuality permit customers to reduce inventory carrying costs.

Matson also competes by offering the most comprehensive service to customers, including:

Matson also competes by offering one of the most comprehensive services to customers, including:

the only container service to and from the three largest U.S.

1 unchanged sentence

the most efficient terminal network on the U.S.

West Coast provided by SSAT;

West Coast with three exclusive use terminals provided by SSAT;

a dedicated inter-island barge network which is integrated with Matson’s line haul schedule;

weekly roll-on roll-off service from Long Beach and Oakland;

roll-on/roll-off service from Long Beach and Oakland;

a world-class customer service team;

and efficiency and experience in handling cargo of all types.

and efficiency and experience in handling cargo of many types.

Alaska Service:

2 unchanged sentences

There are also two U.S.

flagged Jones Act barge operators, Alaska Marine Lines, which mainly provides services from Seattle, Washington to the ports of Anchorage and Dutch Harbor, and other locations in Alaska, and Samson Tug & Barge, which mainly serves Western Alaska and other locations.

which mainly serves Western Alaska and other locations.

The barge operators have historically shipped lower value commodities that can accommodate a longer transit time, as well as construction materials and other cargo that are not conducive to movement in containers.

Foreign-flagged vessels provide alternatives for companies shipping cargo (mainly seafood) from the Alaska ports of Kodiak and Dutch Harbor.

Other competition includes air freight and over-the-road trucking services.

Matson’s AAX service has two major competitors, CMA CGM and Maersk Lines, which provide services between Dutch Harbor, Alaska and Asia.

Matson offers customers twice weekly scheduled service from Tacoma, Washington to Anchorage and Kodiak, Alaska and weekly service to Dutch Harbor, Alaska.

Matson offers customers twice weekly scheduled service from Tacoma, Washington to Anchorage and Kodiak, Alaska, and a weekly service to Dutch Harbor, Alaska.

The Company also provides a barge service between Dutch Harbor and Akutan in Alaska.

Matson is the only Jones Act containership operator providing service to Kodiak and Dutch Harbor in Alaska, which are the primary loading ports for southbound seafood.

Matson offers dedicated terminal services at the Alaska ports of Anchorage, Kodiak and Dutch Harbor performed by MatNav, and at the port of Tacoma, Washington performed by SSAT.

Matson offers dedicated terminal services at the Alaska ports of Anchorage, Kodiak and Dutch Harbor performed by Matson, and at the port of Tacoma, Washington performed by SSAT.

Matson’s AAX service also offers customers a service from Dutch Harbor, Alaska to Ningbo and Shanghai, China, with transshipment services from those ports to other locations in Asia.

China Service:

Major competitors to Matson’s China service include large international carriers such as ONE (formerly “K” Line, NYK Line and MOL), Maersk, CMA CGM, Evergreen, COSCO, and ZIM.

Matson’s China service competes by offering fast and reliable service from the ports of Ningbo and Shanghai in China to Long Beach, California, and providing fixed day arrivals and next-day cargo availability.

Matson’s service is further differentiated by SSAT’s best-in-class stevedoring services, access to Shippers Transport Express and off-dock container

yards enabling fast truck turn times, Matson-dedicated equipment including chassis to speed cargo availability, one-stop intermodal connections, and providing world-class customer service.

Matson has offices located in Hong Kong, Shenzhen, Xiamen, Ningbo and Shanghai, and has contracted with terminal operators in Ningbo and Shanghai.

Major competitors to Matson’s China service include large international carriers such as CMA CGM, OOCL, ZIM, Evergreen and Maersk.

Other competition includes air freight carriers.

Matson’s China service competes by offering fast and reliable service from the ports of Ningbo and Shanghai in China, and feeder services from other Asian ports of origin, to Long Beach and Oakland, California.

Matson provides fixed day-of-the-week arrivals and industry leading cargo availability.

Matson’s service is further differentiated by best-in-class stevedoring services provided by SSAT, Matson dedicated terminal space, access to Shippers Transport Express off-dock container yards for faster truck turn times, Matson-dedicated equipment including chassis to speed cargo availability, one-stop intermodal connections, and world-class customer service.

Matson also provides intermodal services in coordination with Matson Logistics.

Matson has offices located in Shanghai, Shenzhen, Xiamen, Ningbo and Hong Kong, and has contracted with terminal operators in Ningbo and Shanghai.

Guam Service:

Matson’s Guam service has one major competitor, APL, which operates a weekly U.S.

Matson’s Guam service has one major competitor, APL, a U.S.

flagged subsidiary of CMA CGM, which operates a weekly U.S.

flagged container feeder service connecting the U.S.

West Coast to Guam and Saipan, via transshipments primarily over Busan, South Korea.

West Coast to Guam and Saipan, via transshipments to U.S.

flagged feeder vessels in Yokohama, Japan and Busan, South Korea.

Waterman operates a roll-on/roll-off service, which periodically calls at Guam.

There are also several foreign carriers, including CMA CGM, that call at Guam from foreign origin ports.

Matson offers customers a weekly service to Guam as part of the CLX service from three ports on the U.S.

Matson’s ocean transit time, frequent sailing and reliable on-time performance provides an industry-leading service to its customers.

Japan Service:

Matson’s Japan service competes primarily with APL, which operates a weekly U.S.

Matson’s Japan service has one major competitor, APL, which operates a weekly U.S.

flagged containership service from the U.S.

West Coast to the port of Naha, Okinawa, Japan.

West Coast to the port of Naha in Okinawa, Japan.

Matson offers customers a weekly service to the port of Naha in Okinawa, Japan as part of the CLX service from three ports on the U.S.

Micronesia and South Pacific Services:

2 unchanged sentences

Matson serves customers in numerous industries and carries a wide variety of cargo, mitigating its dependence upon any single customer or single type of cargo.

In 2020, 2019 and 2018, the Company’s 10 largest Ocean Transportation customers accounted for approximately 22 percent, 23 percent and 24 percent of the Company’s Ocean Transportation revenue, respectively.

None of these customers individually account for more than 10 percent of Matson’s Ocean Transportation operating revenues.

The Company’s 10 largest Ocean Transportation customers account for approximately 15 percent of the Company’s Ocean Transportation revenue.

For additional information on Ocean Transportation revenues for the years ended December 31, 2021, 2020 and 2019, see Note 2 to the Consolidated Financial Statements in Item 8 of Part II below.

Matson’s Ocean Transportation services typically experience seasonality in volume, generally following a pattern of increasing volumes starting in the second quarter of each year, culminating in a peak season throughout the third quarter, with subsequent decline in demand during the fourth and first quarters.

Historically, Matson’s Ocean Transportation services have typically experienced seasonality in volume, generally following a pattern of increasing volume starting in the second quarter of each year, culminating in a peak season throughout the third quarter, with subsequent decline in demand during the fourth and first quarters.

This seasonality trend is amplified in the Alaska service primarily due to winter weather and the timing of southbound seafood trade.

As a result, earnings tend to follow a similar pattern, offset by periodic vessel dry-docking and other episodic cost factors, which can lead to earnings variability.

As a result, earnings have tended to follow a similar pattern, offset by periodic vessel dry-docking and other episodic cost factors, which can lead to earnings variability.

In addition, in the China trade, volume is typically driven primarily by U.S.

1 unchanged sentence

Freight rates are impacted mainly by macro supply and demand variables.

Since 2020, Matson’s typical seasonal trends have been impacted by the global pandemic which has resulted in elevated levels of demand experienced in our Ocean Transportation services.

Matson’s expanded services in China and other locations have resulted in significant increases in volume during the second half of 2020 and throughout 2021.

Supply chain congestion and elevated levels of demand are expected to impact the Company’s Ocean Transportation services during 2022.

Maritime Laws and the Jones Act :

16 unchanged sentences

The Jones Act ensures frequent, reliable, roundtrip service to these locations.

Matson’s vessels operating in these trade routes are Jones Act qualified.

Matson’s vessels operating in these trade routes are Jones Act qualified and maintained in compliance with such requirements.

Matson is a member of the American Maritime Partnership (“AMP”), which supports the retention of the Jones Act and similar cabotage laws.

The Jones Act has broad support from both houses of Congress and the Executive Branch.

Matson believes that the ongoing war on terrorism and geopolitical environment have further solidified political support for U.S.

Matson believes that the geopolitical environment has further solidified political support for U.S.

flagged vessels because a vital and dedicated U.S.

13 unchanged sentences

Any changes in such laws may have an impact on the services provided by Matson in those regions.

For a discussion of the risks arising from the Jones Act and other regulations, see Part I, Item 1A of this Form 10-K.

Rate Regulations and Fuel-Related Surcharges:

2 unchanged sentences

Producer Price Index.

Matson generally provides a 30-day notice to customers of any increases in general rates and other charges, and passes along decreases as soon as possible.

Matson generally seeks to provide a 30-day notice to customers of any increases in general rates and other charges, and passes along decreases as soon as possible.

Matson’s Ocean Transportation services engaged in U.S.-foreign commerce are subject to the jurisdiction of the Federal Maritime Commission (“FMC”).

1 unchanged sentence

Matson applies a fuel-related surcharge rate to its Ocean Transportation customers.

Changes in the fuel-related surcharge levels are correlated to market rates for bunker fuel prices along with other factors related to fuel expense recovery.

Matson’s fuel-related surcharge is correlated to market rates for fuel prices and other factors, and is intended to help Matson recover fuel-related expenses .

Other Environmental Regulations:

In addition to the vessel emission regulations discussed above, Matson’s operations are required to comply with other environmental regulations and requirements including the Oil Pollution Act of 1990, the Comprehensive Environmental Response Compensation & Liability Act of 1980, the Rivers and Harbors Act of 1899, the Clean Water Act, the Invasive Species Act and the Clean Air Act.

Matson is also subject to state regulations affecting terminal and vessel emissions, such as the requirement to shut down vessel auxiliary engines while at berth at California ports and switch to electrical power.

The Company actively monitors its operations to address compliance with these and other regulations.

Matson is also subject to state regulations affecting terminal and vessel emissions, such as the requirement to shut down vessel generator engines while at berth at California ports and switch to shore electrical power.

The Company actively monitors its operations for compliance with these and other regulations.

For more information on Matson’s environmental stewardship initiatives, including its environmental goals, see Matson’s Sustainability Report and other information available at www.matson.com/sustainability.

The website is provided for convenience only, and the contents of our website do not constitute a part of and are not incorporated by reference into this Form 10-K.

LOGISTICS SEGMENT

3 unchanged sentences

Matson Logistics provides intermodal rail, highway, and other third-party logistics services for North American customers and international ocean carrier customers, including MatNav.

Matson Logistics strives to reduce transportation costs for its customers through volume purchases of rail, motor carrier and ocean

transportation services, augmented by services such as shipment tracking and tracing, and single-vendor invoicing.

Matson Logistics creates award winning benefits and value for its customers through volume purchases of rail, motor carrier and ocean transportation services, augmented by services such as shipment tracking and tracing, accessibility to its private fleet of 53-foot intermodal containers and single-vendor invoicing.

Matson Logistics operates customer service centers and has sales offices throughout North America.

4 unchanged sentences

Warehousing and Distribution Services:

Matson Logistics operates two warehouses in Georgia and two warehouses in Northern California providing warehousing, value-added packaging and distribution services.

Matson Logistics operates two warehouses in Georgia and two warehouses in Northern California providing warehousing, trans-loading, value-added packaging and distribution services.

Supply Chain Management and Other Services:

6 unchanged sentences

Matson Logistics’ transportation brokerage services compete most directly with C.H.

Robinson Worldwide, the Hub Group, XPO and other freight brokers and intermodal marketing companies, and asset-invested market leaders such as J.B.

Robinson Worldwide, Hub Group, XPO and other freight brokers and intermodal marketing companies, and asset-invested market leaders such as J.B.

Competition is differentiated by the depth, scale and scope of customer relationships;

7 unchanged sentences

Matson Logistics serves customers in numerous industries and geographical locations.

In 2020, 2019 and 2018, the Company’s 10 largest logistics customers accounted for approximately 19 percent, 21 percent and 23 percent of Matson Logistics’ revenue, respectively.

None of these customers individually accounts for more than 10 percent of Matson Logistics’ operating revenues.

The Company’s 10 largest logistics customers account for approximately 25 percent of the Company’s Logistics revenue.

For additional information on Logistics revenues for the years ended December 31, 2021, 2020 and 2019, see Note 2 to the Consolidated Financial Statements in Item 8 of Part II below.

In general, Matson Logistics’ services are not significantly impacted by seasonality factors, with the exception of its freight forwarding service to Alaska which may be affected by winter weather and the seasonal nature of the tourism industry.

However, Matson’s Logistics businesses are being impacted by the global pandemic which has resulted in elevated levels of demand for our Logistics services that is expected to continue during 2022.

EMPLOYEES AND LABOR RELATIONS

1 unchanged sentence

In support of Matson’s vision to be a great place to work for all employees, the Company focuses on a variety of human capital programs that have been developed to attract, retain and motivate its employee workforce.

As a company that

operates in various global locations, the Company’s human capital programs are designed to reflect the unique market practices in each geographic location.

The Company’s success depends on employing a diverse, talented and engaged workforce that reflects its local communities, supports an environment of high standards and performance, and thrives in the Company’s collaborative and respectful culture.

As a company that operates in various global locations, the Company’s human capital programs are designed to reflect the unique market practices in each geographic location.

The Company’s success depends in part on employing a diverse, talented and engaged workforce that reflects its local communities, supports an environment of high standards and performance, and thrives in the Company’s collaborative and respectful culture.

During 2021, Matson had 4,259 employees worldwide, of which 147 employees were based in international locations and 3,040 employees were covered by collective bargaining agreements with unions.

These numbers include seagoing personnel who rotate through billets (as described below) and temporary employees, but do not include employees of SSAT or other non-employee affiliates such as agents and contractors.

In prior years, Matson reported the number of regular shoreside employees only and excluded seagoing personnel and temporary employees.

The composition of Matson’s workforce by geography is as follows:

8 unchanged sentences

Bureau of Labor Statistics, traditionally the shipping industry’s workforce has been predominately represented by white males.

While Matson’s workforce is representative of many of the communities where it operates, the Company believes it can do more to change the status quo within the Company and industry.

The composition of Matson’s domestic shoreside workforce by gender and race in 2020 is as follows (data for seagoing personnel is not available to the Company):

The composition of management positions within Matson’s domestic shoreside workforce by gender and race in 2020 is as follows (data for seagoing personnel is not available to the Company):

While Matson’s workforce is representative of many of the communities where it operates, the Company has taken steps to do more to change the status quo within the Company and industry.

In 2021, the Company continued to advance many of its diversity, equity and inclusion efforts.

This includes continuing its efforts to analyze pay among various employee groups to confirm pay equity across the Company.

Externally, the Company is supporting programs intended to help build a diverse talent pool for Matson and its industry.

In 2020, the Company committed $100,000 toward creation of new Matson scholarships to be offered in conjunction with

approximately 15 higher education institutions and maritime academies in its communities with the goal of increasing diversity among those pursuing studies in transportation and logistics.

Separately, the Company has committed more than $200,000 to expand its paid internship program with the goal of increasing exposure to the Company and industry among a diverse group of students in its various regional locations.

Externally, the Company supports programs intended to help build a diverse talent pool for Matson and its industry.

In 2020, the Company committed $100,000 toward creation of new Matson scholarships to be offered in conjunction with 16 higher education institutions and maritime academies in its communities with the goal of increasing diversity among those pursuing studies in transportation and logistics.

The first scholarships were granted in Fall 2021.

Separately, the Company committed more than $200,000 to fund paid internships with the goal of providing professional work experience opportunities and promoting the Company and the industry to a diverse group of students in its various regional locations.

The first internships under this program are anticipated for Summer 2022.

The composition of Matson’s domestic shoreside workforce by gender and race in 2021 is as follows (data for seagoing personnel is not available to the Company):

The composition of management positions within Matson’s domestic shoreside workforce by gender and race in 2021 is as follows (data for seagoing personnel is not available to the Company):

“Minority” in these graphs refers to any employee who self-identifies as such under the categories established by the Equal Employment Opportunity Commission.

Total Rewards Programs:

7 unchanged sentences

The Company focuses on providing the next generation of promising talent with the tools they need to build their own careers at Matson.

In 2019 and 2020, 40 percent and 53 percent of open positions, respectively, were filled through internal promotions.

The Company also provided more than 2,250 hours of employee training and development, while giving regular performance reviews to its non-union workforce.

For more information on Matson’s human capital programs, please see our Sustainability Report which is available at www.matson.com/sustainability .

This website is provided for convenience only, and the contents of our website do not constitute a part of and are not incorporated by reference into this Form 10-K.

In 2021, 46 percent of open positions were filled through internal promotions.

The Company also provided approximately 3,200 hours of employee training and development, while giving annual performance reviews to its non-union workforce.

For more information on Matson’s human capital programs, see our Sustainability Report which is available at www.matson.com/sustainability .

Bargaining Agreements:

Matson’s shoreside and seagoing employees are represented by a variety of unions.

As shown in the chart below, union employees comprise 71% of Matson’s global workforce.

Matson has collective bargaining agreements with these unions that expire at various dates in the future.

As shown in the chart below, union employees comprise 71 percent of Matson’s global workforce.

Matson has collective bargaining agreements with these unions that expire at various dates in the future, including as early as 2022.

While Matson believes that it will be able to renegotiate these collective bargaining agreements with its various unions as they expire without any significant impact on its operations, no assurance can be given that such agreements will be reached without slow-downs, strikes, lockouts or other disruptions that may adversely impact Matson’s operations.

For a discussion of the risks arising from the negotiation of collective bargaining agreements, see Part I, Item 1A of this Form 10-K.

Additionally, Matson and SSAT are members of the Pacific Maritime Association (“PMA”), which on behalf of its members negotiates collective bargaining agreements with the International Longshore and Warehouse Union (“ILWU”) on the U.S.

2 unchanged sentences

In August 2017, the ILWU agreed to extend its contract with the PMA to July 1, 2022.

The Company believes that the renegotiation of this contract will be completed during 2022.

Multi-employer Pension and Post-retirement Plans:

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business