Horizon Lines to Launch U.S. Inland Express Network for Five Star Express Trans-Pacific Liner Service

SHANGHAI, Nov. 15, 2010 /PRNewswire/ -- Horizon Lines, Inc. (NYSE: HRZ), the leading U.S. domestic ocean shipping and integrated logistics company, announced it will launch express intermodal container service to key inland U.S. cities when it begins the new Five Star Express (FSX) trans-Pacific liner service in December. The announcement was made today during a press conference here for China news media.

The maiden FSX voyage is scheduled to depart Ningbo, China, on December 14, 2010, Shanghai on December 15, and arrive in Los Angeles on December 26.  Approximately 60% of the initial voyage is already subscribed, as the company continues to make steady progress toward its goal of 75% bookings for the first sailing.

"As other carriers reduce service locations and slow service speeds, U.S. shippers continue to tell us they want fast and reliable service alternatives not only port-to-port, but inland to final destinations as well," Brian Taylor, Senior Vice President of International Services at Horizon Lines, said in a presentation to journalists. "At a time when U.S. retailers are maintaining lower inventory levels and placing more logistics responsibilities on their manufacturing partners here in China, our Five Star Express service offers a fast and reliable transit schedule to keep supply chains running smoothly."

Horizon Lines plans to offer some of the fastest inland transit times in the industry, including 15-day availability in Kansas City from Shanghai and 16-day availability in Dallas, using scheduled intermodal rail service from Los Angeles every week. The carrier also will offer express inland service to Chicago, Memphis, Atlanta and Charlotte using on-dock rail connections to avoid drayage fees on the West Coast, saving customers time and expense. Horizon Lines plans to expand the inland express network to other locations throughout the United States next year.

Horizon Lines is able to offer a cost-effective inland service because of operational synergies with the carrier's domestic U.S. shipping network serving export customers to Puerto Rico, Alaska, Hawaii and Guam. Delivering imports inland to these markets will provide a more stable supply of containers in locations where many shippers struggle to find available container capacity. Horizon Lines maintains strong relationships and direct electronic data interchange  integration with the nation's railroad operators, facilitating the delivery of quality service.

"We do not operate in a one-size-fits-all supply chain," Taylor said. "Our niche focus to provide reliable scheduling, fast transits and quality customer service offers a compelling alternative in the market at the right time."

Horizon Lines' Asia Service Background

Five of Horizon Lines' vessels currently call ports in China under its transportation services agreement with Maersk Line, and this trans-Pacific service has been in place since December 1999. Once this agreement expires on December 10, 2010, Horizon Lines will begin transporting general cargo from Ningbo and Shanghai 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 trans-Pacific import alternative, the new Five Star Express service will allow Horizon Lines to better accommodate 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 and intermodal rail service to inland destinations to create an integrated import/export solution.

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-K filed with the SEC on February 4, 2010 and our Form 10-Q for the fiscal quarter ended June 20, 2010 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.