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Horizon and Pasha up fuel fee


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POSTED: Saturday, June 13, 2009

Horizon Lines and Pasha Hawaii Transport Lines are following on the heels of the state's largest ocean shipper and increasing their fuel surcharges for Hawaii-mainland service.

One week after Matson Navigation said it was increasing its surcharge by the largest amount in at least a decade, Horizon issued a service bulletin yesterday in which it matched the 8 percentage-point increase of Matson that brought the fuel surcharge to 28 percent. Horizon's increase will go into effect on July 5, the same day as Matson.

Horizon also said it was raising its fuel surcharge for its Guam/CNMI trade by 8 percentage points — matching Matson — to 29.5 percent.

Both Horizon's and Matson's surcharges are effective July 5.

The increase by Horizon is its third straight after six consecutive decreases. Both Horizon and Matson previously announced surcharge increases of 3.5 percentage points — to 20 percent. Matson's 20 percent surcharge goes into effect June 21, while Horizon's surcharge went into effect Monday.

Separately, Horizon said yesterday it will pay $20 million and accept some base-rate freezes in a class-action settlement with Puerto Rico individuals and entities over allegations of price-fixing between 2002 and 2008.

The base-rate freeze component of the settlement agreement provides that class members who have contracts in the Puerto Rico trade with Horizon as of the effective date of the settlement would have the option, in lieu of receiving cash, to have their base rates frozen for two years.

Pasha, which transports vehicles between Honolulu and San Diego, said it was boosting its fuel surcharge by 5 percentage points to 22.5 percent from 17.5 percent, effective July 5.

A previously announced 5 percentage-point increase by Pasha to 17.5 percent will go into effect on June 21.