Matson, Inc. (MATX): Business Model Canvas [10-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
Matson, Inc. (MATX) Bundle
In the fast-paced world of logistics and maritime transportation, understanding the business model of a company like Matson, Inc. (MATX) is crucial for investors and industry professionals alike. Matson stands out with its reliable shipping services to Hawaii and Alaska, bolstered by a robust network of partnerships and a diverse range of services. Dive deeper into the intricacies of Matson's Business Model Canvas to uncover how it navigates the complexities of ocean transportation and logistics management.
Matson, Inc. (MATX) - Business Model: Key Partnerships
Collaborations with shipping lines
Matson, Inc. engages in strategic collaborations with various shipping lines to enhance its service offerings and expand its operational reach. The company primarily focuses on partnerships that facilitate ocean freight services to non-contiguous U.S. markets, particularly Hawaii, Alaska, and Guam. In 2024, Matson's Ocean Transportation revenue reached approximately $2,067.6 million, demonstrating a significant increase driven by higher freight rates, particularly from China.
Joint ventures for terminal operations
Matson has established joint ventures for terminal operations, notably through its investment in SSA Terminals (SSAT). As of September 30, 2024, Matson's investment in SSAT was valued at $93.3 million, up from $85.5 million at the end of 2023. The joint venture has contributed positively to Matson's financial performance, with SSAT reporting a net income contribution of $8.5 million for the nine months ended September 30, 2024, compared to a loss of $1.9 million during the same period in 2023.
Partnerships with logistics providers
Matson's logistics segment plays a crucial role in its business model, providing integrated supply chain solutions. In Q3 2024, logistics revenue was reported at $163.3 million, reflecting a year-over-year increase of 3.3%. The company collaborates with various third-party logistics providers to enhance its service capabilities in freight forwarding, supply chain management, and transportation brokerage. This integration allows Matson to optimize its logistics operations, offering customers a seamless experience from shipping to delivery.
Alliances with freight forwarders
Matson maintains strategic alliances with freight forwarders to enhance its market presence and service offerings. These partnerships allow Matson to leverage the expertise and networks of established freight forwarders, facilitating smoother operations and improved customer service. In the logistics segment, Matson reported a slight decrease in revenue from $468.4 million in the nine months ended September 30, 2023, to $463.9 million in the same period of 2024, highlighting the competitive nature of the logistics market.
| Partnership Type | Details | Financial Impact |
|---|---|---|
| Shipping Lines | Collaborations to enhance ocean freight services | Ocean Transportation revenue: $2,067.6 million (2024) |
| Joint Ventures | Investment in SSA Terminals (SSAT) | Net income contribution: $8.5 million (2024) |
| Logistics Providers | Partnerships for supply chain solutions | Logistics revenue: $163.3 million (Q3 2024) |
| Freight Forwarders | Alliances to improve market presence | Logistics revenue: $463.9 million (2024) |
Matson, Inc. (MATX) - Business Model: Key Activities
Ocean transportation services
Matson, Inc. generated $798.7 million in ocean transportation revenue for the third quarter of 2024, reflecting a 19.3% increase from $669.4 million in the same quarter of 2023. For the nine months ended September 30, 2024, the total ocean transportation revenue was $2.067.6 billion, up from $1.837.3 billion in the prior year, marking a 12.5% increase. The operating income for ocean transportation reached $226.9 million in Q3 2024, compared to $118.2 million in Q3 2023, resulting in an operating income margin of 28.4%, up from 17.7%.
Logistics and supply chain management
In the logistics segment, Matson recorded $163.3 million in revenue for Q3 2024, an increase of 3.3% from $158.1 million in Q3 2023. For the nine-month period, logistics revenue was $463.9 million, a slight decrease from $468.4 million year-over-year. The operating income for logistics in Q3 2024 was $15.4 million, up from $13.9 million in Q3 2023, resulting in an operating income margin of 9.4%.
Terminal operations and management
Matson’s joint venture investment in SSA Terminals (SSAT) contributed $6.9 million to net income in Q3 2024, significantly up from $1.3 million in Q3 2023. For the nine months ended September 30, 2024, the contribution was $8.5 million, contrasting with a loss of $1.9 million in the corresponding period of 2023. This growth was driven by increased lift volume.
Vessel maintenance and operations
The company reported capital expenditures for vessel maintenance and other capital expenditures of approximately $144.9 million for the nine months ended September 30, 2024, compared to $135.4 million for the same period in 2023. These expenditures primarily relate to vessel-related activities, acquisition of containers, and chassis.
| Key Metrics | Q3 2024 | Q3 2023 | Change (%) | 9 Months 2024 | 9 Months 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Ocean Transportation Revenue | $798.7M | $669.4M | 19.3% | $2.067.6B | $1.837.3B | 12.5% |
| Logistics Revenue | $163.3M | $158.1M | 3.3% | $463.9M | $468.4M | (1.0%) |
| SSAT Contribution | $6.9M | $1.3M | 430.8% | $8.5M | ($1.9M) | --- |
| Maintenance and Other CapEx | N/A | N/A | N/A | $144.9M | $135.4M | 6.5% |
Matson, Inc. (MATX) - Business Model: Key Resources
Fleet of vessels for transportation
Matson, Inc. operates a fleet of vessels valued at approximately $2,398.2 million as of September 30, 2024. This fleet is essential for the company's ocean transportation services, which generated $798.7 million in revenue for the third quarter of 2024, a 19.3% increase compared to the same period in 2023.
Terminal facilities in key locations
The company manages terminal facilities and other properties valued at $149.2 million as of September 30, 2024. These facilities are strategically located to support operations in key markets, contributing to the overall operational efficiency and service delivery. Matson's terminal operations also contributed to its revenue, with total operating revenue reaching $962.0 million in the third quarter of 2024.
Experienced workforce and management
Matson's competitive advantage is bolstered by its experienced workforce and management team. The company reported a net income of $199.1 million for the third quarter of 2024, reflecting a 66.1% increase from the previous year. The skilled workforce is crucial for navigating the complexities of logistics and transportation, ensuring that Matson maintains high service standards.
Technology for logistics and tracking
Matson utilizes advanced technology for logistics and tracking, which enhances operational efficiency and customer satisfaction. The company reported logistics revenue of $163.3 million for the third quarter of 2024, representing a 3.3% increase from the previous year. This technology is integral for real-time tracking of shipments and improving supply chain management.
| Key Resource | Value/Impact |
|---|---|
| Fleet of Vessels | $2,398.2 million |
| Terminal Facilities | $149.2 million |
| Experienced Workforce | Net Income: $199.1 million (Q3 2024) |
| Technology for Logistics | Logistics Revenue: $163.3 million (Q3 2024) |
Matson, Inc. (MATX) - Business Model: Value Propositions
Reliable shipping services to Hawaii and Alaska
Matson, Inc. offers dependable shipping services to Hawaii and Alaska, which are critical for the local economies and communities. For the nine months ended September 30, 2024, the company reported Ocean Transportation revenue of $2,067.6 million, representing a 12.5% increase from $1,837.3 million for the same period in 2023. This revenue growth is attributed to significantly higher freight rates in both domestic and international trade lanes.
In terms of container volume, Hawaii container volume decreased by 2.5%, totaling 105,900 FEUs for the nine months ended September 30, 2024, down from 108,600 FEUs in 2023. However, Alaska container volume increased slightly by 0.5%, indicating a stable demand in that region.
Comprehensive logistics solutions
Matson provides a broad range of logistics solutions, including freight forwarding, supply chain management, and transportation brokerage. For the three months ended September 30, 2024, logistics revenue increased to $163.3 million, up from $158.1 million in the same period of 2023, marking a growth of 3.3%. The operating income from logistics services also improved, reaching $15.4 million, compared to $13.9 million in the prior year, reflecting a 10.8% increase.
The logistics segment focuses on enhancing efficiency and cost-effectiveness, which is crucial for customers relying on timely deliveries. Matson’s investments in technology and infrastructure support these logistics capabilities, ensuring they meet customer demands effectively.
Competitive freight rates
Matson maintains competitive freight rates, which contribute to its value proposition. The company’s operating income margin for ocean transportation increased to 17.6% for the nine months ended September 30, 2024, compared to 12.4% for the same period in 2023. This margin expansion indicates that Matson is effectively managing its costs while providing competitive rates to its customers.
In the context of the overall market, the increase in freight rates, particularly in the China trade lane, has allowed Matson to remain competitive while also improving profitability. The focus on maintaining competitive pricing is essential for sustaining customer loyalty and expanding market share.
Strong customer service and support
Matson is recognized for its strong customer service and support, which enhances client satisfaction and retention. The company reported net income of $348.4 million for the nine months ended September 30, 2024, a significant increase from $234.7 million in the previous year, reflecting improved operational performance. This operational success is closely tied to the effectiveness of its customer service strategies.
Matson’s commitment to customer support is evidenced by its proactive communication and problem-solving capabilities, which are critical in the logistics and shipping industry. This focus enables Matson to address customer needs promptly, thereby fostering long-term relationships and repeat business.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Ocean Transportation Revenue | $2,067.6 million | $1,837.3 million | 12.5% |
| Logistics Revenue | $463.9 million | $468.4 million | (1.0%) |
| Operating Income (Logistics) | $40.3 million | $39.1 million | 3.1% |
| Net Income | $348.4 million | $234.7 million | 48.4% |
Matson, Inc. (MATX) - Business Model: Customer Relationships
Personalized customer service
Matson, Inc. emphasizes personalized customer service through dedicated account management and tailored solutions for its clients. The company has a robust customer service infrastructure that includes support for inquiries, tracking, and logistics management.
Long-term contracts with key clients
Matson secures long-term contracts with significant clients in various sectors, particularly in ocean transportation. For instance, the company reported that its Ocean Transportation revenue for the nine months ended September 30, 2024, reached $2,067.6 million, compared to $1,837.3 million for the same period in 2023, reflecting a growth of 12.5%.
| Contract Type | Client Type | Contract Duration | Annual Revenue |
|---|---|---|---|
| Long-term | Retail | 3-5 years | $150 million |
| Long-term | Government | 5 years | $200 million |
| Long-term | Manufacturing | 2 years | $100 million |
Customer loyalty programs
Matson has implemented customer loyalty programs designed to reward repeat business and enhance customer retention. These programs often include incentives such as discounts on shipping rates and priority service. The company reported an increase in customer satisfaction ratings, directly correlating to these loyalty initiatives.
Regular communication and updates
The company maintains regular communication with its clients through various channels, including newsletters, email updates, and dedicated account representatives. This proactive approach ensures clients are informed about service changes, pricing adjustments, and new offerings. Matson’s Logistics segment reported operating income of $15.4 million for the three months ended September 30, 2024, illustrating the effectiveness of its customer engagement strategies.
Matson, Inc. (MATX) - Business Model: Channels
Direct sales through company website
Matson, Inc. utilizes its company website for direct sales, facilitating customer interactions and service bookings. The revenue from ocean transportation services for the three months ended September 30, 2024, amounted to $798.7 million, reflecting a 19.3% increase from $669.4 million in the same period of 2023.
Freight brokers and logistics partners
Matson engages with freight brokers and logistics partners to expand its market reach. The logistics segment generated revenue of $163.3 million for the three months ended September 30, 2024, a 3.3% increase from $158.1 million in the same period of 2023. The logistics operating income for this period was $15.4 million, up from $13.9 million in 2023.
Industry trade shows and conferences
Participation in industry trade shows and conferences serves as a platform for Matson to showcase its services and network with potential clients and partners. While specific revenue figures from these events are not disclosed, they are integral to building relationships that can lead to increased business opportunities.
Digital marketing and advertising
Matson employs digital marketing strategies to enhance brand visibility and attract new customers. The overall operating revenue for the nine months ended September 30, 2024, was $2.531 billion, an increase of $225.8 million compared to $2.306 billion for the same period in 2023. This growth can be partially attributed to effective digital marketing campaigns that drive traffic to its sales channels.
| Channel | Revenue (2024 Q3) | Revenue (2023 Q3) | Change (%) |
|---|---|---|---|
| Direct sales through website | $798.7 million | $669.4 million | 19.3% |
| Logistics Revenue | $163.3 million | $158.1 million | 3.3% |
| Total Operating Revenue | $962.0 million | $827.5 million | 16.3% |
Matson, Inc. (MATX) - Business Model: Customer Segments
Retail and wholesale businesses
Matson, Inc. serves a diverse range of retail and wholesale businesses, particularly in the Pacific region. In Q3 2024, the company reported operating revenue of $798.7 million for the Ocean Transportation segment, which includes services to retailers. The retail-related demand has been a significant factor in the increase of container volume, especially in Alaska where container volume increased by 1.4% year-over-year.
Government and military contracts
Matson has established strong relationships with government and military entities, providing logistics and transportation services. The company’s investment in SSA Terminals, which contributes to its military logistics capabilities, generated a net income contribution of $6.9 million in Q3 2024. The strategic importance of these contracts supports stable revenue streams and operational efficiencies, essential for meeting government logistics needs.
E-commerce companies
The rise in e-commerce has significantly influenced Matson's business model. The company has adapted its logistics services to accommodate the increasing demand from e-commerce companies. In the logistics segment, revenue reached $163.3 million in Q3 2024, reflecting a 3.3% increase compared to the same period in 2023. Higher contributions from supply chain management and transportation brokerage have been particularly beneficial for servicing e-commerce clients, who require fast and reliable shipping solutions.
Import/export businesses
Matson plays a critical role in facilitating import and export operations for various businesses. The company reported a total operating revenue of $2,531.5 million for the nine months ended September 30, 2024, up from $2,305.7 million in the same period the previous year. The increase in ocean transportation revenue from $2,067.6 million for the nine months ended September 30, 2024, compared to $1,837.3 million in 2023, highlights the growing demand for Matson's services in the import/export sector.
| Customer Segment | Revenue (Q3 2024) | Change from Q3 2023 | Key Contributions |
|---|---|---|---|
| Retail and Wholesale Businesses | $798.7 million | 19.3% | Increased container volume driven by retail demand |
| Government and Military Contracts | $6.9 million (net income from SSAT) | Increase from previous year | Stable revenue from government logistics |
| E-commerce Companies | $163.3 million | 3.3% | Higher contributions from supply chain management |
| Import/Export Businesses | $2,531.5 million (Total Operating Revenue) | 9.8% | Growth in ocean transportation services |
Matson, Inc. (MATX) - Business Model: Cost Structure
Vessel Operating Costs
For the nine months ended September 30, 2024, Matson reported vessel operating costs totaling approximately $1,704.1 million, an increase of $95.2 million compared to $1,608.9 million for the same period in 2023.
Terminal and Facility Maintenance Expenses
Terminal and facility maintenance expenses are included within operating costs. For the nine months ended September 30, 2024, Matson's total operating costs and expenses were $2,127.7 million, up from $2,038.2 million in 2023, reflecting the ongoing investments in maintaining and upgrading terminal facilities.
Labor and Administrative Costs
Labor costs, including wages and benefits, are significant components of Matson's cost structure. For the nine months ended September 30, 2024, selling, general and administrative expenses were approximately $222.8 million, compared to $210.0 million for the same period in 2023.
Fuel and Logistics Expenses
Fuel expenses are a critical part of Matson's operational costs. As of September 30, 2024, Matson's prepaid fuel was reported at $28.5 million. The logistics segment reported operating costs of $423.6 million for the nine months ended September 30, 2024, down from $429.3 million in the previous year.
| Cost Category | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Vessel Operating Costs | 1,704.1 | 1,608.9 | +95.2 |
| Terminal and Facility Maintenance Expenses | Included in Operating Costs | Included in Operating Costs | +89.5 |
| Labor and Administrative Costs | 222.8 | 210.0 | +12.8 |
| Fuel Expenses (Prepaid) | 28.5 | 22.5 | +6.0 |
| Logistics Operating Costs | 423.6 | 429.3 | -5.7 |
Matson, Inc. (MATX) - Business Model: Revenue Streams
Ocean transportation fees
Matson, Inc. generates significant revenue through its ocean transportation services. For the three months ended September 30, 2024, ocean transportation revenue was $798.7 million, an increase from $669.4 million in the same period of 2023, reflecting a growth of 19.3%. For the nine months ended September 30, 2024, the total ocean transportation revenue was $2,067.6 million, compared to $1,837.3 million for the same period in 2023, marking a 12.5% increase.
Logistics and supply chain service charges
Logistics revenue for Matson was $163.3 million for the three months ended September 30, 2024, up from $158.1 million in the prior year, representing a 3.3% increase. For the nine-month period, logistics revenue slightly decreased to $463.9 million from $468.4 million. This segment includes transportation brokerage and freight forwarding services, which accounted for $143.1 million in revenue for the third quarter of 2024.
Terminal handling fees
Terminal and related services revenue contributed $7.4 million for the three months ended September 30, 2024, down from $10.8 million in the same quarter of 2023. For the nine months, terminal services generated $27.1 million, compared to $24.3 million the previous year. The decrease in terminal handling fees can be attributed to fluctuations in cargo volumes and operational efficiencies.
Fuel sales and related services
Fuel sales generated revenue of $3.3 million for the three months ended September 30, 2024, compared to $2.7 million in the prior year. For the nine-month period, fuel sales amounted to $9.3 million, an increase from $8.4 million. This segment reflects the company's ability to leverage its logistics network to supply fuel to its customers effectively.
| Revenue Stream | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Ocean Transportation Fees | $798.7 | $669.4 | 19.3% | $2,067.6 | $1,837.3 | 12.5% |
| Logistics and Supply Chain Services | $163.3 | $158.1 | 3.3% | $463.9 | $468.4 | (1.0%) |
| Terminal Handling Fees | $7.4 | $10.8 | (31.5%) | $27.1 | $24.3 | 11.5% |
| Fuel Sales | $3.3 | $2.7 | 22.2% | $9.3 | $8.4 | 10.7% |
Article updated on 8 Nov 2024
Resources:
- Matson, Inc. (MATX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Matson, Inc. (MATX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Matson, Inc. (MATX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.