Matson reported a first-quarter income drop of 28% due to downward pressure on rates from falling demand from China, where rates for containerships are falling faster than expected.

As a result, the company expects operating income in its container shipping segment to drop 15% to 20% below last year’s levels.

The Hawaii-based containership operator reported net income of $18.1m for the first quarter, down from $25m a year ago.