Matson (MATX) risk factors, FY2024 10-K

Risks Related to the Jones Act

1. 01Repeal, substantial amendment, or waiver of the Jones Act or changes in its application would have an adverse effect on the Company’s business
2. 02The Company’s business would be adversely affected if the Company were determined not to be a U.S. citizen under the Jones Act

Risks Related to the Company’s Operations

1. 03Changes in macroeconomic conditions, geopolitical developments, or governmental policies, including due to outbreaks of disease, have affected and could in the future affect the Company
2. 04The shipping industry is competitive, and the Company has been and may continue to be impacted by new or increased competition
3. 05The loss of or damage to key customer relationships may adversely affect the Company’s business
4. 06The Company is dependent upon key vendors and third parties for equipment, capacity, facilities, infrastructure and services essential to operate its business, and if the Company fails to secure sufficient third-party services, its business could be adversely affected
5. 07An increase in fuel prices, changes in the Company’s ability to collect fuel-related surcharges, and/or the cost or limited availability of required fuels may adversely affect the Company’s profits
6. 08Evolving regulations and stakeholder expectations related to sustainability matters exposes the Company to heightened scrutiny, additional costs, operational challenges and a number of risks
7. 09The Company may not be timely or successful in completing its fleet upgrade initiatives, which may result in significant costs and adversely impact the Company’s ability to meet its climate goals
8. 10The Company’s vessel construction agreements with Philly Shipyard subject the Company to risks
9. 11The Company’s operations are susceptible to weather, natural disasters, risks arising from climate change, maritime accidents, spill events and other physical and operating risks
10. 12The Company may be impacted by transitional and other risks arising from climate change
11. 13The Company faces risks related to actual or threatened health epidemics, outbreaks of disease, pandemics or other major health crises, which could significantly disrupt the Company’s business
12. 14The Company’s significant operating agreements and leases could be renewed/replaced on less favorable terms or may not be renewed/replaced on acceptable terms, if at all
13. 15The Company may face unexpected dry-docking or repair costs for its vessels
14. 16The Company is involved in a joint venture and is subject to risks associated with joint venture relationships
15. 17The Company is subject to risks associated with conducting business in foreign markets
16. 18The Company’s terminals in Hawaii and Alaska require modernization
17. 19Heightened security measures, war, actual or threatened terrorist attacks, efforts to combat terrorism and other acts of violence may adversely impact the Company’s operations and profitability
18. 20Acquisitions may have an adverse effect on the Company’s business

Risks Related to Employees

1. 21Work stoppages or other labor disruptions caused by the Company’s unionized workers and other workers or their unions in related industries could adversely affect the Company’s operations
2. 22Loss of the Company’s key personnel or failure to adequately manage human capital could adversely affect its business

Risks Related to Information Technology

1. 23If the Company is not able to use its information technology and communications systems effectively, the Company’s ability to conduct business might be negatively impacted
2. 24The Company’s information technology systems have in the past and may in the future be exposed to cybersecurity risks and other disruptions that could impair the Company’s ability to operate and adversely affect its business

Risks Related to Financial Matters

1. 25A deterioration of the Company’s credit profile, disruptions of the credit markets or higher interest rates could restrict its ability to access the debt capital markets or increase the cost of debt
2. 26Failure to comply with certain restrictive financial covenants contained in the Company’s credit facilities could preclude the payment of dividends, impose restrictions on the Company’s business segments, capital resources or other activities or otherwise adversely affect the Company
3. 27The Company’s effective income tax rate may vary
4. 28Changes in the value of pension assets, or a change in pension law or key assumptions, may adversely affect the Company’s financial performance
5. 29The Company may have exposure under its multi-employer pension and post-retirement plans in which it participates that extends beyond its funding obligation with respect to the Company’s employees

Risks Related to Legal, Regulatory and Compliance Matters

1. 30As an ocean transportation and logistics services company, the Company is subject to numerous safety, environmental, and other laws and regulations that impact the Company’s operations, are costly to comply with and expose the Company to liability
2. 31The Company is subject to, and may in the future be subject to, disputes, legal or other proceedings, and government inquiries or investigations that could have an adverse effect on the Company