Five Star Express Service Will Offer Rapid Transit Between Central China and the U.S. West Coast
Initial Voyage in December Already 25% Committed
CHARLOTTE, N.C., Aug 05, 2010 /PRNewswire via COMTEX/ -- Horizon Lines, Inc. (NYSE: HRZ), the nation's leading domestic ocean shipping and integrated logistics company, today announced it has secured two important agreements in the ongoing development of its new Asia liner service.
Horizon Lines has appointed Mr. Hon Wing Lam as its Owner's Representative and Ben Line Agencies as its General Agent to support the company's ongoing sales and operations in Shanghai and Ningbo.
As Horizon Lines Owner's Representative, Mr. Lam brings more than 30 years of ocean transportation experience and spent the past 13 years working in China. Prior to joining Horizon Lines, Mr. Lam worked for several leading ocean carriers where, among other things, he managed shipping and logistics in the China trade.
Ben Line Agencies is Asia's leading privately-owned shipping services company. With over 150 years of experience in the shipping industry, the company has established a network of more than 90 owned offices employing 1,500 people across 15 Asian countries. As the General Agent for Horizon Lines, Ben Line will support all sales efforts and operations in China.
Beginning on December 13, 2010, Horizon Lines will launch a weekly liner service, called the Five Star Express service, with port calls at Shanghai and Ningbo in Central China and Los Angeles and Oakland in California. Using its five 2,824 TEU capacity Hunter Class vessels, Horizon Lines will offer some of the fastest transit times in the transpacific trade, including 11-day port-to-port transit from Shanghai to Los Angeles with Monday morning cargo availability every week at the nation's busiest import gateway.
"The development of our Five Star Express service continues to be on schedule and we are very pleased with partnerships we have formed in China to support this operation," said Brian Taylor, Senior Vice President, International Services. "Our customers have been very receptive to our transpacific offering. As a result, our weekly vessel capacity is already 25 percent committed."
Horizon Lines' Asia Service Background
Five of Horizon Lines' vessels currently call ports in China under its space-charter agreement with Maersk Line. Once that agreement expires on December 10, 2010, Horizon Lines will begin transporting general cargo on behalf of direct commercial customers. Sales and marketing efforts for the service have been formally underway since March.
In addition to offering customers a transpacific import alternative, the new Five Star Express service will allow Horizon Lines to serve an expanding military presence in Guam, where trade is expected to grow significantly in coming years. The Five Star Express service will connect with Horizon Lines' warehousing and distribution capabilities on the U.S. West Coast to create an integrated import/export solution.
"We continue to believe that we are entering the market at an opportune time," Mr. Taylor said. "U.S. importers are diversifying their ocean shipping contracts to adjust to ongoing capacity issues in the transpacific. We have engaged with our customers to capitalize on these opportunities and are finding success as a niche player recognized for schedule integrity and customer service."
About Horizon Lines
Horizon Lines, Inc., is the nation's leading domestic ocean shipping and integrated logistics company. The company owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. The company also manages a domestic and overseas service partner network and provides integrated, reliable and cost competitive logistics solutions. Horizon Lines, Inc., is based in Charlotte, NC, and trades on the New York Stock Exchange under the ticker symbol HRZ.
Forward Looking Statements
The information contained in this press release should be read in conjunction with our filings made with the Securities and Exchange Commission. This press release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "target," "projects," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements.
All forward-looking statements involve risk and uncertainties. In light of these risks and uncertainties, expected results or other anticipated events or circumstances discussed in this press release might not occur. We undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. See the section entitled "Risk Factors" in our Form 10-Q filed with the SEC on July 23, 2010, for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, there can be no assurance that actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences.
SOURCE Horizon Lines, Inc.