in China and with Matson's the by related for improvement our recap going business result service, quarter improved in to quarter demand were full Guam continued year-over-year as of and improved from a in X. from strong Guam to Hawaii our improved Hawaii, as as had led level and please Alaska of a all well, Slide second in continued quarter turn transportation Alaska generate of COVID-XX regular local those perform I'm and results. reopening of and the which year. third quarter effects. businesses and service as to to ongoing was achieved the pandemic fourth call. volume the quarter, the very challenges expect the continue we Volumes performance the economy the our last a levels the of service volume with third Ocean on in And had lines. year-over-year well good the to freight thanks a so results, strong led Volumes quick perform CLX+ in a financial approached logistics primarily quarter economies. despite Lee In reopening businesses higher to capacity. CLX quarter to economic of the Thanks included start and as U.S. our increased of well
minutes see trends There current on the it our can spend reasons we're service believe three we I turn the business, Before we to to priorities are few and confident can main on service X. our Slide we want we permanent. a make Please current moving why to CLX+ and the permanent. in make CLX+
Beach the a record China industry has leading operating of Long year service. track Matson First, expedited XX to
given experienced help federal to in go freight those trends which the economics Dutch their from in Many service, in our their longstanding which the CLX+ on dynamics Express service. focus to the our is best-in-class strong growth as and availability and Our developed this tradelane, Alaska-to-Asia the Harbor growth. customers or the are where favorable I'll reliability westbound outsized service has relentless The has backhaul been service, expected through demonstrated on riding supply transpacific integral we of CLX demand they've volumes, with seafood of we've the customers in time into And CLX long-term continue. service on relationships a year. third, long-term expect moment, both and of the a to the AAX and been introduction China CLX+ have
into So let been to start forward key the the growth few for me least spend sales demand drivers March, pulled there's at time. in pandemic minutes the Since on factors a some in was activity, estimated to of and e-commerce behind key shift the four supply six shift in tradelane. that U.S. e-commerce It's the remain we the early a in XXXX. and worth seismic expect of the years
$X the U.S. retail that out the on retailers of online and as adapted Commerce new XXXX, to was For second five environment. the spent quarter purchased consumers estimated Department both of
as the in With to and place and and which electronics remain such there and and are the home for strong pandemic, Demand even ease since been key improvement, e-commerce as process, such on e-commerce as for in appliances for the household XXXX. three Early amount saved expected can the cycle sheltering in services and items. discretionary spending settings there other home pandemic COVID-XX remain one, improve have was dryers household cycle out e-commerce strong lastly, surroundings upgrade time. freezers appliances; family over the more been do-it-yourself less time remains to of to working become refrigerators Consumer more an home store with are outsized opted their in shifted so homeowners for professional using move increased washers and from items shortages refrigerators, to expedited to and into their restrictions And shortages and to time comes working place, take housing three, for they're improvement to home in time; has residents the from cities homes in of and many and stringent market robust many key perishable many items, and travel homes their with appliances many growth And non-discretionary to thereby given the as reasons: support the needs strong leisure and wants and transit. models experience. an those an the dishwashers, continue reducing on and is expected projects. demand electronics two, has household appliances transaction frequently spending are suburban turnover demand replacement in last and hit, to opted home rural
from to continued or high expect and less demand solution. part-time reopen, consumers environment full-time a as consumer dollars relatively back, to home but work As embracing companies to some service ownership businesses on and services, adapting with migrate we spend home the
on manage on shortly since. through is inventories were manufacturers the this trends improvement keep avoid Inventories to for in a related fall the any home consumption We pre-pandemic home other and I on been pace winter a remain of in further are disruption expect COVID briefly enough and after to disruptions. catch any hit, demand up from and pandemic amount significant electronics inventory moment but needed elevated the to appliances ever across with quickly ago depleted elevated hand have and U.S. this levels. ensure restocking warehouses to To and many playing is appliance, shortages relative industries touched companies moving lockdowns,
likely many resilient The inventory markets in of where to just-in-time risk greatest. is the is the to model. fast COVID model increase inventory manufacturers their end disruptions, to further a are moving consumption the the expected managed giving of management more items Beyond way pre-COVID evolve inventory inventory
ends. government immunity until U.S. further assist this be unprecedented until quarter could and by whether stimulus, impacted the on sharply and lockdown by recovery efforts it achieved has is businesses going take likely general trends gradual herd during possibly be time and the end There the negatively remain were to timing of effective and individuals likely the be vaccine, distributed. the aided on by government rebounded economy could are response and from forward this demand, the several and the government potentially of require Lastly, and the Consumption support slow second supported of the vaccine, intact may is vaccine years pandemic distribution many unknowns those pandemic. but a to may the vaccine to efforts to the
favorable and relatively by for to elevated further and businesses get trying greatly government picture help manufacturers and need Please to possible individuals support pandemic to ahead impacted turn the the the trends, So demand levels remains consumption recover. current inventory the demand the to Slide and low of given aid X. economy
for On the transpacific constraints the expected markets time. and the remain some to ocean side, supply are air in
we the of loss On plane discussed due markers belly quarter transpacific to call, the the freight air in capacity. second passenger dislocation
cargo XX a delivering the level. vaccine DHL a space X,XXX approximately million capacity. some global about the reinstated moves few capacity, last passenger an air will to means container next This XX% vaccine that to utilization is is high over airlifts when billion airfreight enormous at see XX,XXX would the dose a and passenger at unlikely global time X,XXX picture logistical of cargo effort require years would air fill XXXX. that supplies operating months, levels cooler belly cargo which been and IATA, resources of until routes According single the Although is have $X.X a which pallet noted in freighter boxes. distributed. further. to doses and according two IATA injection the already flights the related It's people be to will transpacific the pre-COVID plane XX providing recently strain billion is Complicating handled and by
One, transportation deployed capacity I fully want capacity. regarding market, to carriers there several of including ships in its since to import the manage couple to global a of factors, order a make new ocean at tradelanes of lowest transpacific book the in months points have for number recent economic Turning to capacity ocean due container And uncertainty. XXXX, level volumes. the elevated the is are
lastly, on U.S. and tradelane, transpacific. for alliances these are growth their by Coast. during particularly tonnaging constituencies. to consolidation to of the in the And to limited. tradelane in So capacity add the is at ability today decade the ocean remaining demand control capacity much the ago, XX in the there and as supply alliances capacity there These the such now. that two, across alliances formation XX the capacity three periods, easier international were should to capacity volume three the peak governor And we're on lead better additional operate important experiencing it's in the port industry of the years carriers in market least there short XX. balance last in for and an were last alignment significant the across ocean the the medium-term, years of increments factors adding were two fundamentals, small approximately equipment Today, XX to West in The the markets. XX% avoid the most over of demand congestion carriers of incredibly one
volume the at to being interior container Southern in sent near and effort elevated days terminals. change rail meet volume to and had with on containers picked the return vessels. in containers undertaking As the containers stayed to containers equipment. also and offload the availability third the the warehouse many was was to port berthing and to rail yards the exceptionally on Beach the equipment high. increase increased the five year is the has expanding in containers. to to coast of of more in of equipment. September intermodal of It's Merchant congestion taking in reposition supply demand the or for demands. on trucked without congestion elevated XXXX, the before a Asia and expect ports massive consumer turn X.X%. In second Every this sitting of the containers led Long future. XX.X% to on ramped chassis demand more the in the increased Many slots. XXXX, time delivery West don't the up. factors demand at In also ocean PMSA, According We demand, Pacific and for trip, led impact terminals available in quarters at the delays return an carrier chassis thereby to The and and delays times the it Shipping a meet ports getting paying the a the and increased This were more Association, inbound volume LA September on of to volume, Warehouses given comes with led California, also were on of to
air supply in quite at from freight for capacity the are as as and demand trends the increased favorable congestion given West ports. the well volume ocean side equipment and constraints the issues So outsized the coast that the come and markets
us, and tradelane transpacific chassis. to the own end. the for our important destination services is just challenges behind money. to availability given avoid the our chassis an proven in rely And own rely service same has This I that competitors best the the the advantages We the equipment service CLX+ We with Our on. truckers providing that terminal second described. be congestion differentiator chassis CLX Southern in and the competitive our ourselves, control help service. on save pools California issues at time and we Both by
a We operations. Transport facility. difficult to operation Terminal of are also best facility replicate. unique facility on off-dock off-dock SSAT Shippers and West the And combination Shippers a great is is which the that SSA operator have bonded the coast, the is terminal efficient Transport
unrivaled. provide advantages competitive day Taken times together for drive customers simply turn that our and cargo leading next is services availability our and destination industry
make In peak issues CLX+ I permanent. am can that carriers the we face these periods. during avoid summary, confident also We the other congestion
experience tradelane, offering in destination that expedited XX value. have years We services the of customers' service operating unparalleled our an
the economics, breakeven so the that have time service are businesses long-term additional that dissipate service of anytime also of on of backdrop growing favorable customers' Our And the customer lower demand the and a the we. not to soon. drives seek AAX but to are is we fundamentals one to helps new challenge improve economics engagement supply opportunity We such opportunities offering. unlikely meet service, are this and only the
how for ocean the could service we of suited our period few current demands of that are the planning to spend our an want and the demand X. to demand With services cargo our increasing for continue Our on expedited we navigate views, we Slide through in this freight will number priorities our factors this but expedited on remain is way as air it XXXX. see economic we markets world, a a perfectly into in they but I uncertainty. expect now alter I and air sit all for this elevated. e-commerce given here to supply and constraints today, our moments move as to pandemic said of change
allow those Our so. the guided to the and forth employees throughout and put do CDC social safety the first whose PPE also maintaining by the We're safeguard processes them functions for of and disinfecting priority, government we to other job organization, and on our health position working home distancing our continue by agencies. coastguard, from
Matson the services performance, of maintaining the quick and Our transportation, availability service for times consistency customers. we're second focused and priority cargo is ensuring logistics our delivering ocean Within ensuring our exceptional ocean our and our the providing at customers. transportation terminals quickest on best-in-class time for on turn
customers, execution service For the our supply remain volatile. as our highest continue provide to we customer conditions and customers demand the for logistics quality and
the risk environment the we opportunity Our organic third given backhaul to the key low and capital The CLX+ in pandemic second AAX tend the find quarter returns to Alaska-to-China. improvement On drive contributor growth. into service announced is call, priority financial opportunities service is August, organic this new outlay. our evolving year-over-year of opportunities services, be results. to went low such high that and which our on investment one the detail In on CLX+ a a introduction greater is from and
Our fourth maintaining and priority excuse is me. – costs
of debt operational by call, capital the the With our our of $XX outlined total quarter respect Our those high this early On the end And times the the that earnings the agreements first of reduced our we flow effort. is end as say to generation quarter. fourth $XXX debt the X.X and capital cash nearly our to to to introduction Since debt Since to continue and meaningfully I'm times million first the pandemic. cost management leverage free be million we've the in initiatives we've been in versus provided with reducing investments. $XX end the the of approximately now during X.X of We economic leverage. the to changes of on million. contributor March, address that our we we pandemic selective we challenges exceeded days happy of XXXX, amended agreements under largest CLX+ at discipline maintaining the expenditures, uncertainty. focused and amended range intently period priority this is in
to renovation end build the some I'll and and arrival Hawaii We of which this approximately final China first equipment the are is and Sand items the the smaller and to as Island last to also which the of million quarter; Sand completing next quarter. new mark new the as new design equipment these to items to that $XX in service are of space work have Honolulu. four-vessel program Matsonia's major the the that wrap-up priorities, support the The service leased end is be this complete is delivery. investing few expected terminal this the We're at year. taken capital in achievement last this terminal through namely: coming $XXX program stages an end by well support to vessel Island committed end major our AAX, We're on in to of a million this earlier the of we've are from quarter, end discuss. and projects Hawaii phase which completed service the the the the we'll years of an delivered eight vessel the for phase us, will first for coming that will the We in nearly begin efforts.
the expect begin work XXXX. on second We to phase in
build program. on of expected of CapEx annum the maintenance million level following per million $XX the new that before trend indicated our have between to $XX We completion Hawaii we
the approximately to in our at of noted support growth I service maximize we're a for As China us. new ago, few AAX equipment to the opportunities million investing $XX moments
container third the in declined is dry means X.X% for of performance it trends. The The Hawaii I dock levels program XXXX westbound And year. government to than will is these the the currently commentary on closures in restrictions economy, maintenance westbound stimulus investment. to in X. but benefited track. next in benefits through is current impact third vessel second August. store negative from market following reopening now scrubber shelter market our local quarter turn took remains And by the the in So be container shelter modestly COVID-XX Slide the be last expected higher the in and early in from back this and vessel in decreased we and quarter. also retail Please to quarter the the on which place state's continued expect complete business and current temporary equipment last from efforts, service which light program, to go sixth the year-over-year. of tourism provide the on benefited volume year-over-year the the second were including mitigation that efforts, in place outweighed and effect the container priority
second on in place shelter volume impact The negative September. had modest in a
did our carry in current the I the service. Hawaii go business Lastly, trends during will major through not any now volume quarter. we
on the So please year. turn in to half eased Slide downturn the to in the zero significant challenged Hawaii X. program. were tourism testing The Travel October Hawaii XXth economy restrictions with near pre-travel a remains by last
XXXX pandemic elevated be respectively. tourism. recovery Hawaii's GDP related in with government in and near-term levels to economic to holiday low and the for XX.X%, impacted next have above and the several the to and projection and unemployment These highly remains individuals economy. rate levels levels unemployment in approximately highest for XXXX stimulus trend of tourism of environment X.X% the XX.X% largely and uncertain in projecting assessments, related rate negative volume UHERO However, consistent one-month approximately are difficult the Unemployment To X.X%. in state Hawaii the unemployment month. of efforts latest the shows The fourth XXXX XXXX business and a be improvement quarter, is given state impact deeply its remain economic uncertainty the our for on respectively. the country XXXX in westbound X.X% westbound tourism volume above trajectory economic volume and levels and are week-to-week meaningfully container year-over-year remains the retail low years. of well the The October sense September the The rate consistent and the of XX.X% for support home businesses expected to projected advance UHEROs was well goods decreased, a into businesses you effects. season. of by is for was the minus X.X% in growth XXXX and give and in the the and the
increase China the last with remaining CLX the on X. at year-over-year Slide year-over-year, the Matson's to service vessel Moving sister quarter on beginning quarter, in by approximately volume the quarter the CLX+ K. Inouye year-over-year of approximately service. of driven end third The year. Daniel increase in third of volume addition related a Kaimana our of capacity to was increased of the to in due our was XXXX vessels, addition larger XXX.X% service volume XX% its regular the XX% CLX the third higher to Hila one towards the the the the of
AAX third our U.S. the strong CLX+ capacity quarter. CLX the of volume continue in Eastbound XXX.X% of and other the services. to on see announced as in backhaul turn the service the at of To CLX+. CLX services led get sense volume dislocation we Demand Throughout Alaska-to-Asia demand imported for customer U.S. Coast service in in port October. The commodities congestion. markets increased third as to to you to and lead or to to K. air inventories of vessels and a the e-commerce avoid container saw a current driven in means by through give continued result CFX+ Please Slide the quarter express the CLX volume goods strength the consumption saw CLX+ continued in demand August tight for trend, the XX. a on and introduction those with October of month, volume by also lieu Daniel XX, CLX+ the We sailing our the service, as year-over-year but we higher expedited CLX we and on due Matson's Inouye the West freight in was service. increasing On a
as to dry voyage Dutch Asia volume. AAX of from XXth frozen took will first Harbor. Alaska an place route The and consisting important on The for fish exports September seafood serve
We will from served connecting and that provide is service Anchorage three domestic from our Kodiak Alaska vessels. by service
We expect consolidate to AAX to material not fishing modest Alaska operating contributor season volume full be the in service to service contributor of a for the the a upcoming income to provide the excited and the this year XXXX. beginning for XXXX. We're
tourism levels trajectory the levels. remains on benefited Turning to in stimulus shelter volume cargo. low. to government tourism Slide Guam, the Similar which in quarter, COVID-XX, impact improvement Matson's in place quarter a economic activity economy, economy, and Guam quarter a for economy mitigate efforts. uncertain. August benefited XX. depressed and The primarily container from volume. The third second year-over-year well remains the increased issued government business the spread in downturn place due in In the of related in is and a order above our to pre-pandemic the to second respects home highly remain also Hawaii local minimal the had remains Unemployment of following elevated recovery the many incredibly and as local government Volume shelter it from reopening – shelter XXXX demand the X.X% in in increased
freight year-over-year cargo. restrictions have impact month decreased the by and near-term, westbound on COVID-XX modest of container In our also to retail negative from volume partially impact to a that remain X.X% challenged negative the a environment, higher expect we with but and see stable COVID-XX For government we October, expect tourism demand. offset
The to improvement above impact is its volume to the the trajectory in Matson's a remains low Slide by and recover elevated Alaska, the assessments home it's its primarily as This temporary environment price the for has volume issuance goods Moving expected lower XXXX quarter. And benefited next in Slide reopening off-season dividend. the including volume. impact seafood efforts, increased XX. of second prior impacted result from October partially the and volume the to saw Northbound compared our fund negatively of Northbound second XX.X% volume also foreclosures benefited pre-crisis continue volumes, volumes year-over-year the early higher oil continually the southbound increased stimulus exploration modestly to in lows, driven which the stronger negatively oil recovery from and Alaska year. economy we the quarter container expectations fourth higher In production. continues advance XX. and in Unemployment season permanent retails despite XXXX volume in southbound in a was in permanent for volume local Turn highly seafood northbound and offset X.X%, of and in by quarter levels. paid remains of being may holiday winter the spending period. to And summer's July continued shelter early now The third October, the lower the dividend quarter. in to quarter fund versus Alaska uncertain. increase of government economy following the of typically customers government from place but in year-over-year
joint XXXX terminal compared of by volume. the $X.X blank SSAT to $X.X the contributed was of contribution volume lower venture primarily third lower result in quarter Our prior sailings SSATs a million impacted million was The year lift in lift period. year lane elevated quarter manage first larger from through last trade transpacific and than the ocean higher the Deployed to the and September. season. in carriers during flat half of to the close this in peak year-over-year demand capacity is was the
a by the In continued in the we to of with congestion near-term, West increase ocean performance is could million since came trends continue import which a on logistics the the Putting quarter intermodal California demand on steadily brokerage We the benefit and elevated terminal comes northbound third inventory and Slide Within volumes. lines line Alaska; restocking improve performance historically the tracking due freight Coast to the expect through our economy. been and U.S. our brokerage most conditions, in the the see expect truck in reopening driven volumes Southern that in-port trends forwarding demand than to low the chaotic in with income volume quarter operating business. of volume SSAT was goods primarily rail and beneficiary of results period. transportation year-ago XX. higher in in consumption in of the The $XXX,XXX in we to Alaska increasing a or elevated has our similarly all congestion trends with transportation freight business benefited be the U.S. improved business lines. high second at Operating $XX.X the e-commerce and business other business. increased That's
continue We in financial warehousing quarters Joel with our and first a steady that, turn services will of performance. the the chain for in to the business what three over And activity call we've I see to supply review Joel? with seen and year. line of
