Horizon gets charter rate on three ships cut
Horizon Lines said Monday that it has finalized an agreement with CSX Corp. to have charter payments on three ships reduced.
Under the agreement, charter hire expense has been reduced by $3 million annually, retroactive to January, through the January 2015 expiration of the charter. The company said the $3 million in savings was previously included in 2011 cost-savings projections of $18 million or greater.
The agreement represents a total savings of $12 million for Horizon Lines over the remaining life of the charter.
The three chartered vessels, the Horizon Anchorage, Horizon Tacoma, and Horizon Kodiak, operate between Tacoma and Alaska and were built in 1987.
“We greatly appreciate the willingness of CSX to provide meaningful financial assistance as we work to refinance our debt and position Horizon Lines for long-term success,” said Michael T. Avara, executive vice president and chief financial officer. “As our former parent company, CSX remains a valued and very important business partner.”
Horizon gets charter rate on three ships cut
