Matson Corporation released its official second-quarter 2026 results on August 3rd (US time). The China route handled 37,200 FEUs in the quarter, an increase of 4,900 FEUs compared to 32,300 FEUs in the same period of 2025, representing a year-on-year growth of 15.21 TP3T. The company expects its China routes to be at or near full capacity during this year's peak season.
Chinese routes became the main driver of growth in the second quarter.
In the second quarter, Matson reported revenue of $969.4 million, compared to $830.5 million in the same period last year; net income was $129.4 million, compared to $94.7 million in the same period last year; and consolidated operating profit increased to $158.9 million from $113 million. Operating profit in the shipping segment increased by 46.01 TP3T to $144 million, primarily driven by increased contributions from China routes, partially offset by increased fuel-related vessel operating costs.
According to Matson's disclosure, cargo volume on the China route includes containers originating from China and other Asian countries. The route's volume in the second quarter was 37,200 FEU, higher than the 32,300 FEU in the same period last year. Matson noted that trans-Pacific demand declined in the same period last year due to the tariffs implemented in April 2025, therefore the year-on-year increase in this period also includes a low base effect.
Following the Chinese New Year this year, demand momentum on China routes continued into the second quarter. Against the backdrop of tight capacity supply on trans-Pacific routes, demand and freight rates for CLX and MAX services both exceeded the company's previous expectations, with e-commerce, apparel, and electronics being the strongest demand categories. Matson has accordingly raised its full-year outlook, expecting total cargo volume on China routes in 2026 to be higher than in 2025.
Peak season bookings are tight; the fourth quarter may see a return to normal operating rates.
Matson management anticipates that its China routes will be at or near full capacity during the peak season. This assessment is particularly relevant for shippers planning to replenish inventory in the US West Coast, prepare for back-to-school season, holiday promotions, or launch new products: as the peak season approaches, it may become more difficult to coordinate available space and suitable shipping schedules.
The company also anticipates that demand will return to a more traditional seasonal pattern in the fourth quarter of 2026. The baseline is the fourth quarter of 2025, when the trans-Pacific market experienced a period of high demand following the announcement of the US-China trade agreement. These two assessments are not contradictory: utilization rates are likely to remain high during the peak season, and demand is likely to decline normally after the peak season.
It's important to distinguish that Matson disclosed that actual freight rates in the second quarter were higher than expected and provided an assessment of peak season capacity utilization, but it did not explicitly predict that market freight rates would continue to rise in this earnings report. Shippers should not simply chase price increases or concentrate shipments based on this information; they should also consider their own delivery schedules, inventory turnover, and sales plans when scheduling shipments.
Shippers can arrange bookings and shipment batches in advance.
CZL suggests that for goods with a clear arrival or shelving date, booking should be moved forward to 2 to 3 weeks before the expected departure date. For promotional stocking, full container loads, or goods sensitive to shipping schedules, at least 4 weeks should be allowed for coordination, subject to actual release of space and customs clearance arrangements. When shipping, core inventory and replenishment batches can be separated, prioritizing high-turnover SKUs and confirmed orders to avoid tying up all cargo volume to a single shipping date.
If additional shipments need to be replenished via international express in addition to the main sea freight shipment, you can do so first.Freight Inquiryand verifyremote address,Additional feeand the current periodFuel SurchargeThe replenishment cost is included in the shipment plan.