wanted current quarter before unprecedented of call. the call recapping our with on environment our those light priorities to thanks the and we’re I in, begin Lee, the to results. first Thanks, In
to turn X. please So Slide
number period economic we’re of through pandemic manage this objectives and business uncertainty. of critical executing to the a First,
pandemic. under particular company has of the to I want highlight. continues three COVID-XX responded to and in to are There operating respond reality Our areas
employees adhere to or our government PPE, those those on them from vessels safety functions CDC safeguarding warehouses health other Guard, the disinfecting, safety, is Coast the focus by top so to distancing terminals home. enhancing ensure to and job allow to on of whose social our work do and requesting Our ensuring from guidelines and crew processes working
consistency the We’re on operate environment has sure our more Transportation service our the Ocean also and and best-in-class customers today. focused possible. as ensuring Matson’s cargo the and in highest-quality lifeline we performance communities, culture of rooted been quickly available making is service on-time as customers because are in to is these which never to pandemic the than this remote its we to providing important
This stranger economic to before, is difficult economic seen no anything we’re unlike but times. in we’ve operating environment
are to financial the by you into of business the and As heading extended would the responding we operational and new an managing downturn for downturn. a preparing expect, reality aspects
headroom covenant facility executed notes details Joel go more to of weakness. As through became had we will the the later apparent of that and in we period amendments into had our the economic to leverage the additional the sustained manage through COVID-XX amendments private to a bank XX, company evolved in on situation the sheet increasingly to liquidity early end presentation. provide balance On March, XXXX. ensure March it on
recovery as early while profitability challenges In April, an expect the address plan we we weakens cost remains the the initiated economy to uncertain. and encounter capital operating reduction to
the costs tradelane, next include reducing lower in the operating our in Some detail network and increasing CLX of eliminating slide. freight domestic resizing into initiatives capital projects. volumes more or will deferring and tradelanes I the our go capacity to on
and spend on preparing are managing the we a extended I for the Slide to these three turn want reality please downturn. operations where X. to areas, new minutes few for So an
increase to initiatives operational volume of number a better efficiencies align and demand. to capacity evaluating we’re First,
of least shifting this We be one we’ll are to for service to next June in operating plan the weaker a from Inouye XX assume move to nine All CLX. economic Daniel at initiatives to K. Hawaii environment we that before in executing the evaluating that the we’re or months. the we evaluating late the been We’ve better largest mentioned of capacity make last the since ship to fastest Kaimana year. markets. demand the CLX given Hila, with K. third align the CLX ocean Inouye and in cargo the Daniel is sister and and which operating vessels has what in the transpacific see air our quarter the is of
executing reduce initiatives that are evaluating which of on of some we’re this to slide. number a costs, are or There
network the the evaluating calls. of port and We’re Hawaii Neighbor frequency barge Island
We’re calls We’ve reduced Kodiak to terminals operating reductions are Alaska in at also terminals service. operating the to evaluating select evaluating at increase efficiencies. other our number the hours expense of and port
cost We’re achieve to reductions evaluating maintenance deferrals, providers cost from we’re during and reductions looking this service difficult time. and our
number a areas. our of Second, managing we’re costs in personnel
we high a employees. the management and today a The and to XX% Board cash and a The plan plan of We of The May effect salary on a reduction. top the across plan. XXX took fee announced the range. took at freeze end highest reduction have the I is team paid X. This Directors Board of hiring organization, for includes XX% instituted reduction salary XX%
we’re We’re reducing across company. the or or discretionary and eliminating eliminating also reducing costs, overtime
fleet $XX and from operational is other results repositioning, operating initiatives repositioning fleet management XXXX, operating which cost in improve the million We X/X changes. to million and expect $XX of by changes to
economic these and partially declines actions effects. However, COVID-XX the in profit from benefits our offset result a will businesses as situation financial the only its of
X. turn Slide Please to
not and or are eliminating or is third spending deferring we considered final previously capital all essential The that committed. of focus area
phase end three the and the first the be delivered These the a scrubber fourth is program the of previously where capital cycle Hawaii Island our announced be expected include terminal six-vessel large program. renewal completed Sand tail vessel with and fourth We projects to the are vessel committed of expenditure expected at projects final year-end. capital in quarter, by to upgrade
elimination approximately deferral and result to XXXX. in the expect million CapEx of savings $XX in in We
more this committed on due and I and mentioned, downdraft managing quickly cycle a pronounced. depth the have of extent a projects through but will to to present we of curtail opportunities. in prior a contract more XXXX challenges we the XXXX Without company economic the or to in doubt, us While capital limited the the experience have footing number is flexibility for strong in recessions rather the duration CapEx to us, spending ability economic puts to adapt a find relatively our XXXX
first turn please quarter I so will Slide X. the briefly to results, now recap
our essential like goods our the increased overhang Hawaii, Transportation. in expectations. Guam in While operating our Consolidated And by COVID-XX it ago business performance volume of in first levels, despite seems the returned food home the income slightly quarter than came Consumption well a Ocean tradelanes. better ahead long performed led now, stronger-than-expected expected time situation. in Alaska volume drove normal and CLX our of and of to service
comment shelter-in-place in as March and COVID-XX as by freight sailings a COVID-XX below of orders store lines operating presentation. the transportation and came forwarding came SSAT were and which directly resulting little in challenged in retail closures. a some I’ll the brokerage from later situation, on softer was the result Logistics the business our Lastly, canceled slightly situation, expectation by income in challenged
tradelanes, light the provide the In On trends the and the regarded of increasing COVID-XX absence far this economic April pandemic. outlook uncertainties X, activity logistics, on quarter. and the we outlook year for I withdrew of current business commentary in SSAT our full will so
a year-over-year increased COVID-XX. Slide volume have COVID-XX the to X.X% food materially with The for And state mitigate a primarily due of result first affected of These orders decline domestic Hawaii to arrivals the Hawaii announced that, in X. goods several quarter orders to please mid-March. as of spread tourism, which March spread mitigate home essential of consumption precipitous islands. in shelter-in-place the turn of visitor container on to the orders to the and led
So we the this any impact from quarter. volume first see in did development in not our material
effect with last approximately the the closure the we of volume volume the first volume saw then April year. but to in with volume lower XX% year-over-year. tourism as we of declining impact The zero westbound the approximately retail well container down XX% of half as in materially However, of the lower seeing half year-over-year, April now was compared April second stores from April near temporary slightly of are westbound a
can Based we on believe mid- volume in percent in see trend, decline quarter. to a high-teens the quarter second the prior compared we to the current the year
the We respectively. point. continue to from XX%, flow volume X/XX after the loss the the second quarter a meaningfully the were and tourism economic The decline two items. Great Clearly, this remainder potential believe is reasonable majority point saw declines different history I’d that quarterly to sustenance in freight, this some is the to the and volume and despite out recurring the large we year. we volume and during like but XX% carry goods a recessions, the of indirectly of expect will last discretionary and situation impact starting worst directly form in Recession of in we of
latest I X. has on commentary tourism the end to on XX. There been spend despite flights in stay-at-home a virtually provide extended activity May The UHERO April Slide some minutes current the to some on the is and the general of want turn Please based Hawaii of order in through few schedule. state forecast. from statewide no island
significantly, operate and big have continue secure other As to remain most for can mainland, hotel the to retailers, essential residents you day-to-day declined closed open hotels and box occupancy has Like pharmacies goods, grocery but stores imagine, businesses normally. temporarily. their
Some nonessential with limitations. to beginning businesses are open
a effects is income, XX% nearly activity loss the and second has for quarter effects. in for Nearly industries. unemployment XXXX. have a in second the jobs tourism is other going the UHERO jobs significant a will state in lower of XX% latest including claims rate in non-farm captures unemployment. in economy, and and unemployment of forecast March economic seen loss Temporary potential of compared lead order third UHERO’s XXXX impact Hawaii’s workforce in construction in It Hawaii integrated lower XX% surge year-over-year to The and decline to and discretionary to the forecasting on filed spending on general has April. X.X% growth.
decline decline full zero tourism was still annual in forecast below XX%. put The prior and Following tourist arrivals was worst worst QX of implies the XX% all, quarter. annual remain to year-over-year in for decline second visitor that and the into the XX% To the quarter year-over-year and XXXX the year perspective, in both most, arrivals the XX%, and for a projecting levels. significant is improvement if in not real decline March, roughly is UHERO in decline nearly well expenditures. XXXX, visitor activity expected near QX in XXXX year visitor expenditures but time frame in in
was XXXX XX%. to XXXX nearly The from peak-to-trough decline
year-over-year. XXXX X%. X.X% largest are to we this year-over-year GDP COVID-XX recorded put tourism the the far construction forecast saw back worse in rate the be into last planning XXXX. frame to of forecast jobs postponed. GDP quarterly XXXXs. in by X% economic projects XXXX to time the are phases dating recession. So the continue This than decline in effects GDP decline to XXXX are could construction from was expected what to forecast Current history, nearly is those in the likely fall but To be UHERO’s for in forecast approximately completion, to to be in worst to UHERO the growth perspective,
be the loss cycle from duration unclear, and economic in of this the of significant The remains second the rest economic of year. and and depth will quarter effects tourism the the
in majority demand our of level sustenance of volume environment. goods, highly for to this we pandemic consists of Hawaii volume a this maintain recurring type service the expect again, of good However, and
level the now to freight post-Lunar year-over-year, China COVID-XX X.X% X. approximated volume slightly we production, Moving year period. elongated New the of XXXX by that in goods. first the the inventory normal expected ahead low quarter we The levels lows volume in of ramp-up on our factory fourth to rates our achieved Year infrastructure China’s ago from call. on service logistics, was mitigation Matson’s New in volume earnings factory-to-port efforts was customers’ Year but what March quarter sourcing produce in traditional Slide affecting lower our post-Lunar and our in and average achieved
as disruption for and the period. prior and being strong our in service our CLX chains. month retail Apparel orders as volume service a April, retail has the the remains footwear differentiated Demand high-demand air and reduction infilled by declined very in result increased markets. and service transpacific other stores. expedited has percentage retail of attractive offering CLX year-over-year an to cargo Historically, carried in the temporary volume garments, capacity X% eastbound CLX The the has For higher volume ocean freight of a year of been of is compared volume. the the and by significantly of other loss footwear tight supply items U.S. closure shelter-in-place amidst
our example, masks, supplies, critical ships growth For other as personal environment. to carrying and protection sanitizers support well in the have been work-at-home including as equipment electronics,
the We’re shifted type also ocean this our seeing some capacity cargo and volume canceled air to sailings, reduction more e-commerce has service. much of carriers as have traffic in
passenger this. from from Please this the difficult Slide and air loss historically term, freight with belly XX. substantial We attractive to normal. capacity disruption we balance see we’ve historically led freight to in transpacific service. we cost experience air is spend said and the jet when transpacific airfreight the are given that significantly to how minutes capacity what the cargo premium space believe rates, think turn of the replace – high XX service near air loss to alternative of well an unknown to this lower and CLX CLX will to almost will XX capacity year records. as service our demand has before, box longer immediately, service. previous continue want is return few it our to the will – maybe defer but per of hysterically is five-day a good And only expedited A positioning in market I the we tradelane our in for on The
this number unsettled We in large tradelane balance the there year. conditions been to for a the tradelane. sailings Already the of remain transpacific quarter, canceled the have expect of in
will and our the Inouye, As Daniel I vessels, utilized. mentioned when vessel in the Hawaii per service service of fastest one This containers XXX the K. earlier, we roughly plan June. late CLX to move to largest add trip from
stores to initiatives will of will the of at some to again U.S. that, and we for rest balance open year. turn. up year, point, the believe the where in can we our the the ships We For volume retail expect know we that infill and volumes those continue full the keep
of Lastly, light to the CLX string we to in continue the in increase see. dynamics opportunities capacity will supply/demand evaluate we
given for we week, offering. opposite vessel extremely the CLX next expedited our strong a for service sail example, voyage For chartered vessels our smallest one demand the of to to our supplement capacity
to goods first due container partially Guam, increased quarter Turning the of X.X% year-over-year, of Matson’s relief-related year to ago home Slide result XX. In tightening volume XXXX in volume to offset decreased in due primarily as food essential the and a period, by volume COVID-XX. higher demand
impacted tradelane In progressively loss volume April, April in to and the of believe approximately X% in the loss of month the tourism stores we closure decline the We as May. container temporary volume XXXX. further innings compared weaker westbound in retail early volume our We and throughout saw negatively volume. declined the expect of volume were
worst freight Recession period will flow the saw impact in Looking sustenance decline the in nearly volume was and form ultimate of of back of we recurring majority quarterly be goods while Great XX%. XXXX, decline expect significant, we year And westbound last the to volume year-over-year the to items. likely XXXX, the
food the in to Slide a quarter increase primarily with Alaska, vessel. home volume due competitor’s attributable XX. quarter dry container associated for X/X to now shelter from volume competitor’s was Matson’s of as vessel the Approximately as well as demand the place the Moving goods the COVID-XX to due docking dry-docking. to greater residents’ XXXX of in essential XX%, increased and volume In first
in was Southbound quarter achieved modestly first than the the volume XXXX. quarter lower in the level
goods we’d couple last in the prior saw in the quarter of and approximately X% strength in volume XX% second April of believe essential volume see in year-over-year. volume of with compared compared half We first northbound to XXXX. weaker volume at declining then continued the year. in materially declined saw but April, approximately weeks a the food home we the volume decline April, month, For mid-teens We to
impact the XXXX, worst year-over-year Recession at little back the volume X%. decline in over period northbound of was Great Looking XXXX, the a quarterly
would the nearly quarter in mid-teens twice in last percent be the decline percent second seen recession. a volume the So decline
to no and shelter-in-place. moments Similar activity but economic trips. line in ordered a the into Slide a is closure including Alaska latest in businesses nonessential early I spend are reopen to aggressive select few summer April, Hawaii, recently stores. on with The information. retail of travel all the and The want provide state canceling cruise next allowed the Turning within ban to state-wide industries current state, on operators Alaska commentary some a to under XX. major their limitation, the based state initially subject to the mandated state and announced restaurants flights they more of and
in vessels COVID-XX focus the protecting reduced virus. site prices fall Protocols to low are result to spread precipitous as curtail oil production salmon and mitigation producers of fisheries and been currently extremely the the There on levels communities safety to season. rig on prompted on during have workers a the worker of some on lot a and industry The into the at the of the fishing fishing surrounding mitigate upcoming commercial the place efforts. put
XXXX in industries The and hit limited expected accommodation in with XX% recently the prices for food shortfall. issued state to Revenues, is and reopening X and Labor the last is on weeks, services noted The Alaska the six Alaska with of by the unemployment significant. toll Workforce Department population businesses. decline to will in million Unemployment the by a increase measures necessitate approximately budget the of from report possibly other over that April the which COVID-XX hardest. likely to is fall working economic nonessential the some Development XX%, In forecasted state oil be revenue even benefits, and to for of of significantly, age address X.X filed Department
will tourist-related lower due to cancellation we Although will negative development cruise have projects near remains likely Alaska on the production the an be oil expect tourism a delayed. some the and important state’s with to to deferred tours contributor what oil other In in season in and The effect activities. some economy, will it’s be economy. will it industry, short, is happen the be of seen prices the term,
of quarter economic duration the and this and be cycle depth remains the unclear, and the rest the The state second significant year. within of will economic in effects the
However, service continue sustenance a we type to expect impact the Slope, of Further, direct to consists so of direct and anticipate northbound Alaska level in good oil no the highly we volume projects activity this demand little on the North pandemic including in the have to the recurring of we goods, majority sector. environment. our of from state, this little exposure from
have and related the Anchorage. near to exposure also cater of go industry the as no tourism Alaska, cruise our We activity lines cruise area and the boat rail direct to most the operations to Southeast to
to volume but southbound remain steady, in everyone summer off-year expect catch that the cycle. We an two-year to is this we year’s fishing remind want
next Turning to slide, the XX.
to In in SSAT volume and additional loss accounting quarter related to April, lower second million Our $X the primarily sailings. terminal the to to compared quarter $X.X standard expense from period. due year-over-year the canceled lease XXXX was The contributed volume additional due XXXX of in prior the venture, decline adopted experienced first the SSAT, canceled sailings. joint transpacific year in transpacific million lift
to consumer in import We due volumes demand and shelter-in-place term canceled with challenged U.S. ongoing orders Coast expect transpacific remain the sailings. reduced near West to
both SSAT U.S. this the remain recovery at closely recovery speed the volumes point to unclear. expect be lift at tied and economy, of We the in to
result transportation a our XX. a in negative brokerage lower service both freight in softer experienced which logistics primarily lower chain on to The came businesses. period. result of or from quarter ago million in a and on was international due supply of orders retail and shelter-in-place Operating impact forwarding, and had first year million March at closures. now $X.X the than COVID-XX decrease intermodal contributions as the store direct to income Turning Slide $X the
negatively by our near Within Alaska, volume medium-sized to In of volume impacted on and and closure anticipate our businesses retail many some of container West COVID-XX transportation the to of are mitigation which brokerage, be efforts business, less the term. import the lift provide of negatively transportation to and business. impacted brokerage forwarding economic to closure lower businesses impacted stores reopening the April, temporary that highway retail our stores than businesses Coast forwarding effects. nonessential our the business, we small- forwarding impacted continued freight intermodal services, a and the freight the in load modest use U.S. negatively in temporary The
We face majority to of logistics expect year. the conditions of challenging the businesses balance our for the
turn and for the call now financial performance structure our review a will Joel of updates. over capital to I Joel? recent
