Improved fuel recovery helped Horizon Lines in Q2
U.S. domestic carrier Horizon Lines will pay $1 million to settle a lawsuit regarding improper bunker surcharges, logistics news site JOC.com reports.
The company's second-quarter results include the charge, which includes $700,000 to pay the government and Mario Rizzo, who filed the suit, plus $300,000 to cover legal costs.
Horizon Lines reported its operating revenues rose 8.3 percent year-over-year to $281.2 million for the quarter, but its net loss widened to $1.6 million, compared with $900,000 in Q2 2013.
"Horizon Lines second-quarter adjusted EBITDA increased 7.4% from the same period a year ago, driven primarily by higher revenue container volumes and improved fuel recovery," said Steve Rubin, interim president and CEO.
Steve Rubin, Interim President and CEO, Horizon Lines
EBITDA increased 7.4% from the same period a year ago
"The positive factors driving adjusted EBITDA growth were partially offset by lower container rates and contractual labor and other expense increases."
The company reported paying an average of $636 per metric tonne (pmt) for fuel, down from $659 pmt in the same quarter last year.
Fellow U.S. carrier Matson Lines, which was also named in the suit over bunker surcharges, agreed to pay $10 million last month.