Horizon to increase fuel surcharge

Horizon Lines Inc. said yesterday it is increasing its fuel surcharge on ocean shipments between the mainland, Hawaii and Guam by 1.5 percentage points to 35.25 percent, effective June 8.

The state's second-largest ocean shipper, which normally follows moves by Matson Navigation Co., attributed the increase to "continued high and unprecedented levels of the cost of fuel."

"At this time, Horizon Lines sees no immediate relief in sight, as fuel costs are forecasted to remain either at this level or continue to escalate through midyear," Horizon said.

The fuel-surcharge increase from 33.75 percent marks the eight straight time that Horizon has raised that fee since it was lowered to 17.5 percent in January 2007.

Horizon said it would closely monitor fuel costs and will adjust the fuel surcharge as trends warrant.

"Horizon Lines understands that this adjustment impacts your cost of doing business, just as these fuel-cost increases have affected our cost of providing service," the Charlotte, N.C.-based company said in a service bulletin to its customers.

Matson spokesman Jeff Hull said Matson has not taken any action since its last increase to 33.75 percent in April and that it would review Horizon's increase.

Reggie Maldonado, general manager of Pasha Hawaii Transport Lines, also said Horizon's increase would be studied. Pasha, which transports vehicles between Hawaii and San Diego, has been at 31.25 percent since April 7.