Horizon Lines (HRZL)
, Inc. announced it reached an agreement in
principle to charter five new U.S. flag, foreign built vessels for 12 year
terms from Ship Finance International Limited.
The five vessels will be of a proven, international design and will each
carry 2,800 twenty-foot equivalent containers and have 23-knot service
The five new vessels will be deployed in Horizon Lines' weekly service
linking the U.S. West Coast with
Guam and Asia, upgrading the current "TP1"
service that is being served with five Jones Act-qualified vessels today.
The Jones Act covers ocean cargo services to and from Puerto Rico, Hawaii
and Alaska, as well as cargo moving between other U.S. origin and
destination ports, ensuring those cargoes are carried on U.S.-flag,
U.S.-built and U.S.-manned vessels.
Charles G. (Chuck) Raymond, Horizon Lines' CEO and President, said, "As we
embark on our fleet enhancement strategy, this is a proud and historic day
for Horizon Lines."
"The enhanced service will provide us with additional space and faster
transit time between the U.S. West Coast and Guam, as well as the return
voyage from Asia to the U.S. West Coast."
Redeploying the carrier's Jones Act vessels from the TP1 service to Hawaii
and Puerto Rico will provide additional capacity and service scope to better
meet the future needs of Horizon Lines' customers well into the future. The
introduction of this new tonnage also allows the carrier's Jones Act vessels
to be used as reserve capacity to meet seasonal and dry-dock needs, as well
as to respond to potential new opportunities such as coastwise container