Matson Navigation Co. said it plans to raise rates on its Hawai'i service by an average of 3.8 percent at the beginning of next year.

The state's largest ocean shipping company said Hawai'i rates will increase $120 per west-bound container and $60 per east-bound container starting Jan. 3.

The increase compared with annual hikes of 3.9 percent in 2009, 2.5 percent in 2008 and 3.3 percent in 2007.

Matson said it also will raise its terminal handling charges by $125 per west-bound container and $50 per east-bound container on Jan. 3.

"This rate increase will help offset rises in operating costs and support ongoing investments in our Hawai'i service," said Dave Hoppes, senior vice president of Matson's ocean services.

About 80 percent of all goods sold in Hawai'i come via ship, and the increased rates could show up at the supermarket, hardware store and other retail establishments if businesses pass along the higher costs to consumers.

According to Matson, the average cost to ship a 20-pound bag of rice will go up by 10.8 cents when the increased shipping and terminal handling charges kick in. For a 12-ounce can of soda or beer, the shipping and terminal handling charges will rise by nearly half a cent.

Matson, which plans to file the rate increase with the U.S. Surface Transportation Board, said the rate increase will help fund its major capital projects.

The company said it has invested more than $500 million to build four new container ships since 2003 and continues to invest in new container equipment, information technology and enhancements to its terminal facilities.