Here's Why Shares of Matson, Inc. Are Plunging Today
Shares of Matson (NYSE: MATX) plunged on Friday morning and were down more than 25% at 10:45 a.m. EDT. Weighing on the stock was news that a rival plans to launch a competing shipping service. That new competitor could cut into the company's profits, which led two analysts to downgrade its stock.
Yesterday, TOTE Maritime announced plans to establish a new shipping service between the U.S. mainland and Hawaii. The company, which currently ships to Alaska and Puerto Rico, has signed a letter of intent to acquire up to four newbuild containerships, and it has already secured terminal space in Honolulu. These ships are similar in size to the Aloha-class vessels that same shipyard is building for Matson. The first two of TOTE's ships are scheduled for delivery in 2020 and 2021, respectively, which is just in time to meet new environmental regulations that will take effect in 2020, necessitating the replacement of older ships.
Image source: Getty Images.
Source: Fool.com
