Horizon Lines in international expansion

Horizon Lines in international expansion    The nation’s largest domestic container carrier said Friday it will increase its involvement in the international transportation later this year by starting up its own weekly transpacific liner service.
   Horizon Lines, which operates ships between the U.S. mainland and Alaska, Puerto Rico, Hawaii and Guam, has one string of ships, its Transpacific Express Service (TP1-Guam) that continues across the Pacific to China and Taiwan after calling Hawaii and Guam, but the eastbound space is chartered to Maersk Line.
   Now, instead of being a wholesaler, Horizon has announced plans to commence in December 2010 its own weekly inbound service between Asia and the U.S. West Coast. The new service will utilize the company's five 2,824-TEU, 23-knot, U.S.-flag Hunter-class containerships. In preparation for these plans, Horizon Lines and Maersk Line have mutually agreed not to renew their current Asia space-charter agreement when it expires Dec. 10.

Raymond

   'Our study of the market reveals an opportunity for a niche player that can offer quick transit times with the highest levels of service excellence,' said Chuck Raymond, Horizon Lines chairman, president and chief executive officer. 'We believe the time is right. Container rates in the Pacific trade lane have bottomed out and are rebounding. China's economy is showing solid signs of recovery and many major importers have reported that their service needs are not being met.'
   The company said sales and marketing efforts for the service are underway.
   Horizon’s announcement came the same day that a start-up company, Norway’s The Containership Company, said it would launch a new service between the Yangtze river port of Taicang and Southern California in April.
   Horizon’s main rival in the Hawaii and Guam trade, Matson Navigation Co., launched a container service between China and Long Beach in 2006.

Taylor

   Horizon named Brian Taylor as senior vice president of international services, where he will oversee the Asia expansion. Taylor was president and chief operating officer of the company’s Horizon Logistics unit.
   “We believe we are entering the market at an opportune time,' Taylor said. 'China continues to serve as a global economic engine. Burned by sudden capacity shortages over the past four to six months, U.S. importers are looking to diversify their ocean shipping contracts, adding alternatives for peak season capacity and seeking more stable pricing. We will actively engage with our customers during the current transpacific contract season to fully capitalize on these opportunities as a niche player recognized for schedule integrity and customer service.'
   The company added, “the new Asia service will be integrated with the company's expanded warehousing and distribution capabilities on the U.S. West Coast to create an integrated import/export solution.”
   Horizon also said it sees opportunity westbound, saying “the new transpacific service will allow Horizon Lines to continue to serve an expanding military presence in Guam, where trade is expected to grow significantly in coming years.”
   Meanwhile, Horizon also said on Friday it had reached an agreement to renew a terminal services agreement with Maersk affiliate APM Terminals North America for six years. APM Terminals will provides stevedoring and terminal services to Horizon in Jacksonville, Fla.; Houston; Los Angeles; Tacoma, Wash.; and Elizabeth, N.J., through 2015, with an option to extend for two years.
   Horizon said the new deal gives it the option to exclude the Elizabeth terminal from the agreement if it chooses to serve the Northeast market from a port not located in New York or New Jersey. ' Chris Dupin