Americas News
Horizon Lines Revenue Down as Fuel Surcharges Fall
U.S. domestic shipping company Horizon Lines reports that its revenue fell 2.1 percent to $273.7 million year-over-year in the third quarter of 2013 due partly to reduced fuel surcharges.
The company's profits rose 14 percent to $1.6 million, and its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose nearly 30 percent.
"Horizon Lines third-quarter adjusted EBITDA increased 29.6% over the same period a year ago, driven largely by reduced vessel charter expense, increased non-transportation revenue, lower dry-dock transit and crew-related expenses and reduced overhead," said President and CEO Sam Woodward.
"The factors driving adjusted EBITDA growth were partially offset by reduced fuel recovery and certain contractual and inflationary increases in operating expenses more than offsetting a modest improvement in rates, net of fuel."
The company's vessel fuel costs averaged $642 per metric tonne (mt) for the quarter, down from $649 per mt in Q3 2012.
Fuel surcharges fell by $5.4 million year-over-year, and the company also saw a $8 million volume reduction mostly due to fewer sailings from Jacksonville, Florida.
Those declines were partly offset by increases in non-transportation revenues and higher container revenue rates.
Horizon Lines has been working to reduce its fuel costs this year, including by converting some ships to dual-fuel systems capable of running on liquefied natural gas (LNG).
