Horizon Lines to raise shipping rates

The ocean transporter will match an average 3.9 percent increase by Matson Navigation

Horizon Lines LLC announced yesterday that it will raise its ocean freight rates to and from Hawaii an average of 3.9 percent effective Jan. 2, matching an increase planned by competitor Matson Navigation Co.

Horizon's rates will go up by $125 per westbound container and $75 per eastbound container. Rates for shipments originating on the U.S. mainland from inland points served by rail will increase by $385 per container.

In addition, the company will increase its terminal handling charge by $60 per container for shipments to Hawaii and $30 per container for shipments from Hawaii, also effective Jan. 2.

"The ocean freight increases are necessary to offset increased barge and inland expenses, contractual labor costs, and increased capital spending to upgrade the Horizon Lines' container fleet and terminals," said Kuuhaku Park, Horizon's government and public affairs manager.

The company has added another 1,000 new dry containers and 900 new refrigerated containers to its fleet to update the quality of its equipment, Park said.

The announcement came just weeks after Matson said it plans to raise its rates an average of 3.9 percent on Jan. 1. "By waiting, we were better able to evaluate its impact on the market," Park said. "Shipping increases impact everybody and anybody."

The amount of the general rate increase varies depending on several factors, including the type of ocean freight and the direction and mode of transport, Park said.

Automobiles will be exempt from the rate increase. The terminal handling fee for autos going from the mainland to Hawaii is $265. The fee for shipping autos from Hawaii to the mainland is $135.

Horizon last implemented a 3.5 percent general rate increase in January 2005, Park said.

Based in Charlotte, N.C., Horizon Lines operates 16 U.S.-flag vessels on routes linking the mainland United States with Alaska, Hawaii, Guam and Puerto Rico.