Horizon Back to Profit in Q3

by Ship & Bunker News Team
Thursday November 1, 2012

U.S. domestic ocean shipping company Horizon Lines Inc. swung to a $1.4 million profit on revenues of $279.6 million for the third quarter of 2012, after losing $111.7 million on revenues of $267.6 million in the same quarter last year, the company reported.

The Q3 2011 losses included a $117.5 million goodwill impairment charge.

Horizon said its fuel costs for the quarter were down 1.4 percent to $649 per metric tonne (pmt) for Q3 2012, from $695 in the third quarter of last year, but it said fuel will be a major expense over the coming months.

"Fuel prices are projected to remain at historically high levels, averaging $700 per ton in the fourth quarter and $690-$695 per ton for the full year," the company said.

Horizon projects a slight increase in container volumes for the full year compared with 2011 as economic conditions and consumer sentiment improves "modestly."

"Container rates, net of fuel surcharges, are expected to rise slightly, mitigating much of the contractual rate increases the company is incurring this year from its vessel union partners, transportation service providers and for other marine services," the company said.

Horizon, which operates five port terminals in Hawaii, Alaska, and Puerto Rico, and has a fleet of 15 vessels, reduced its bunker surcharge in July after a drop in bunker prices.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com