Horizon posts lower quarterly profit but slightly higher revenue

US JONES ACT carrier Horizon Lines reported a third quarter net profit year on year of US$7.7 million, down from $8.4 million in 2009, despite slightly rising revenue of $311 million compared to $308 million in last year`s third quarter, reported The Associated Press.

Container volume fell 2.8 per cent to 65,726 units in the Puerto Rico and Hawaii-Guam runs, with the largest year on year declines, reported American Shipper. Alaska was off marginally with container volume the first nine months of year coming to 190,610 units, down 1.4 per cent.


Third quarter container rates, net of fuel, rose slightly to $3,247 from $3,229 the same period a year ago. For the nine-month period container rates were $3,258, marginally below the rate of $3,266 over the same period last year.


"A summer slowdown of economic recovery pressured volumes, resulting in a third quarter performance short of expectations," said Horizon chairman, president and CEO Chuck Raymond.


"We had anticipated a firmer recovery. However, after some initial inventory rebuilding this past spring, economic activity slowed as consumer spending remained muted in the face of continuing high unemployment In addition, vessel-operating expenses increased from a year ago due to the timing of regulatory dry-dockings," Mr Raymond said..


"Volume declines in Puerto Rico were exacerbated by competitive pricing pressures, due in part to capacity that was added by a competitor," he said, referring to Sea Star Line` operation of its own ship rather than chartering space from Horizon.