Americas News
Lower Bunker Surcharges Hurt US Carrier's 2013 Results
U.S. domestic carrier Horizon Lines reports it lost $31.9 million in 2013, down from $94.7 million the previous year as its revenues declined 4 percent to $1.03 billion.
In the fourth quarter, the company paid an average of $645 per metric tonne (pmt) for bunker fuel, down 7.1 percent from the same period in 2012.
Horizon Lines reported its four-quarter results were hurt by a $5.1 million year-over-year decrease in fuel surcharges.
The company said it saved money on costs related to vessel leases, dry dock transit, crewing, and overhead, and also achieved cost efficiencies through programs put in place over the past two years.
In 2014, Horizon Lines said it expects "modest volume growth" despite increased competition on its Puerto Rico and Hawaii routes, and it anticipates that container rates will stay flat or improve marginally.
With fuel costs representing a significant financial issue, the company has reported plans to convert vessels to operate on LNG bunkers.
