Horizon Lines

{{Short description|American shipping company}} {{Infobox company | name = Horizon Lines, Inc. | logo = 200px|Logo of Horizon Lines, Inc. | type = Publicly traded | traded_as = HRZL (delisted) | fate = sold in 2015 | successor = Matson Navigation Company | founded = 1956 | hq_location = Charlotte, North Carolina, United States | services = Container shipping, terminals, and ferry. | operating_income = USD 1033 million (2013)<ref name=10K>{{cite web|url=http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9872176|title=2013 Form 10-K, Horizon Lines, Inc.|publisher=United States Securities and Exchange Commission}}</ref> | assets = USD 624 million (2013)<ref name="10K" /> | num_employees = 1,621 (2013)<ref name="10K" /> | website = [https://web.archive.org/web/20150112215812/http://www.horizonlines.com/ www.horizonlines.com] }} '''Horizon Lines, Inc.''' was an American domestic ocean shipping and logistics company headquartered in Charlotte, North Carolina. It was the largest Jones Act-compliant maritime shipping and logistics company, and accounted for approximately 37 per cent of all U.S. container shipments linking the continental United States to Alaska, Hawaii and Puerto Rico.<ref>{{cite web | last = Booth | first = Jonathan | date = 9 May 2011 |title = Why Horizon Lines Should Declare Bankruptcy | publisher = Seeing Alpha | url = http://seekingalpha.com/article/268870-why-horizon-lines-should-declare-bankruptcy | accessdate = 31 December 2011 }}</ref> Under the Jones Act, maritime shipments between U.S. ports is restricted to U.S.-built, owned, and flagged vessels operated by predominantly U.S.-citizen crews. The company originated from Sea-Land Service, Inc. The domestic liner operations of Sea-Land were sold in 2003 and thereafter operated under the name Horizon Lines. Horizon became a publicly traded company on the New York Stock Exchange in 2005.<ref>{{cite web|title=Horizon History |url=http://www.horizon-lines.com/About-Horizon/History.aspx |publisher=Horizon Lines |accessdate=31 December 2011 |url-status=dead |archiveurl=https://web.archive.org/web/20101227184141/http://www.horizon-lines.com/About-Horizon/History.aspx |archivedate=27 December 2010 }}</ref> In 2015 the company was acquired by Matson Navigation Company.{{r|Schwing}}

==Scope of operations== Horizon owned a fleet of 13 Jones Act-compliant container ships as recently as 2014, approximately 31,000 cargo containers, and operated cargo terminals in Alaska, Hawaii, and Puerto Rico.<ref>{{Cite web |url=http://www.horizonlines.com/service/how-we-ship/vessels |title=Horizon Lines - How We Ship |publisher=Horizon Lines |access-date=13 August 2016 | archive-url=https://web.archive.org/web/20140725094637/http://www.horizonlines.com/service/how-we-ship/vessels |archive-date=25 July 2014 |url-status=live}}</ref> Approximately 150 port calls were made each year in Tacoma, Washington for service between Alaska or Hawaii.<ref>{{cite web | title=Port of Tacoma News | date=3 March 2010 | url=http://www.portoftacoma.com/Page.aspx?cid=4329 | accessdate=1 January 2012 | archive-url=https://web.archive.org/web/20120415035626/http://www.portoftacoma.com/Page.aspx?cid=4329 | archive-date=15 April 2012 | url-status=dead }}</ref> Until November 2011, the company ran trans-Pacific service to Guam and China.<ref>{{ cite web | title = Horizon Lines to Discontinue Trans-Pacific FSX Service | date=25 October 2011 | url=http://www.otcmarkets.com/stock/HRZLD/news | accessdate=1 January 2012 }}</ref> It also contracted for terminal services in seven ports in the continental United States. Its primary customers were consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. It also offered shipping services of vehicles and household belongings.<ref>{{cite web |url=http://www.horizonlines.com/service/what-we-ship/vehicles-and-household-goods |title=Vehicles and Household Goods |date= |access-date=8 June 2020 |archive-url=https://web.archive.org/web/20140413203705/http://www.horizonlines.com/service/what-we-ship/vehicles-and-household-goods |archive-date=13 April 2014}}</ref>

Horizon met with criticism within the investor community due to the age of some of its vessels. In the world fleet container ships go to the scrap yard at age 28 while Horizon still maintained C6 and C7 ''Lancer Class'' steam powered vessels.<ref>{{cite web|last=Colton |first=Tim |date=5 March 2005 |title=Maritime News: Why Invest in Horizon Lines? |url=http://www.coltoncompany.com/newsandcomment/comment/comment2005q1.htm |publisher=ColtonCompany.com |accessdate=1 January 2012 |url-status=dead |archiveurl=https://web.archive.org/web/20120226210433/http://www.coltoncompany.com/newsandcomment/comment/comment2005q1.htm |archivedate=26 February 2012 }}</ref> One such vessel, SS ''Horizon Discovery'' (ex-''American Liberty''), was built in 1968 for the now defunct United States Lines.<ref>{{cite web|title=Sun Shipbuilding, Chester, PA |url=http://www.shipbuildinghistory.com/history/shipyards/1major/inactive/sun.htm |publisher=ShipBuildingHistory.com |accessdate=1 January 2012 |url-status=dead |archiveurl=https://web.archive.org/web/20120210150426/http://www.shipbuildinghistory.com/history/shipyards/1major/inactive/sun.htm |archivedate=10 February 2012 }}</ref>

==Department of Justice controversy and litigation== In May 2011 the U.S. Department of Justice reduced the fine levied the previous month after the company pleaded guilty to price-fixing in the Puerto Rico market from $45 million to $15 million.<ref>{{cite web | title=Puerto Rico trade lines face class action suit | date=8 May 2008 | url= http://www.marinelog.com/DOCS/NEWSMMVII/2008may00083.html | publisher = MarineLog.com | accessdate = 1 January 2012 }}</ref><ref>{{cite web | title= Horizon Lines' reduced fine eases bankruptcy threat | date = 28 April 2011 | url = https://www.reuters.com/article/horizonlines-idUSL3E7FS5W320110428 | publisher = Reuters | accessdate=1 January 2012 }}</ref> The reduction was attributed to pressure from bondholders and the possibility that Horizon would declare bankruptcy after losing a contract with Danish shipping group Maersk Line.{{cn|date=March 2023}} In October 2011, the company completed a $653 million refinancing move to avoid bankruptcy. On October 20, 2011, the New York Stock Exchange suspended trading of Horizon's stock because it had fallen below its $15 million continued listing standard for average global market capitalization over a consecutive 30-day trading period.<ref>{{cite web | title= Horizon Lines Avoids Bankruptcy, But Delisted by NYSE | date= 19 October 2011 | url = http://www.hawaiifreepress.com/ArticlesMain/tabid/56/articleType/ArticleView/articleId/5270/Horizon-Lines-Avoids-Bankruptcy-But-Delisted-by-NYSE.aspx | publisher= Hawaii Free Press | accessdate= 1 January 2012 }}</ref> The company stock then traded on the OTCQB market.{{cn|date=March 2023}}

In November 2011, the company agreed to settle with the remaining shippers who opted out of the "Puerto Rico direct purchaser antitrust class action settlement" for $13.75 million <ref>{{cite web|title=Horizon Lines offers shippers a $13.75 million settlement |date=29 November 2011 |url=http://pddnet.com/news-ap-horizon-lines-offers-shippers-a-1375m-settlement-112911 |publisher=Advantage Business Media |accessdate=1 January 2012 |url-status=dead |archiveurl=https://web.archive.org/web/20120429212110/http://pddnet.com/news-ap-horizon-lines-offers-shippers-a-1375m-settlement-112911/ |archivedate=29 April 2012 }}</ref> On 28 January 2012, the company reached an agreement with the U.S. Department of Justice to plead guilty to two counts of providing falsified oil record-keeping documents from a vessel in the U.S. West Coast-Hawaii service. The company paid a fine of $1 million and donated an additional $500,000 to the National Fish & Wildlife Foundation. The company agreed to be placed on probation for three years and to institute an environmental compliance plan.<ref>{{cite web |date= January 31, 2012| title = Horizon Lines Reaches Resolution on Environmental Record-Keeping Incident |url= http://maritime-executive.com/article/horizon-lines-reaches-resolution-on-environmental-record-keeping-incident| publisher =The Maritime Executive LLC |accessdate = 13 August 2016}}</ref>

==Company sale and close of operations== In November 2014 Horizon Lines announced that it had reached formal agreements to sell the entire company. Alaska operations were bought by Matson, Inc.<ref>{{cite press release |author= |title=Matson To Acquire Horizon's Alaska Operations |url=http://investor.matson.com/releasedetail.cfm?ReleaseID=882239 |location=Honolulu, HI |publisher=Matson Lines Investor Relations |agency=Acquire Media |date=November 11, 2014 |access-date=2016-08-13}}</ref> for $469 million while, following regulatory approval, its Hawaii trade-lane business was acquired by The Pasha Group. Service to Puerto Rico ended in December 2014.{{r|Schwing}} The company cited continued losses and struggles to operate and maintain its steam-powered fleet.<ref>{{cite news|last1=Keefe|first1=Joseph|title=Horizon Lines Terminating Puerto Rico Operations|url=http://www.marinelink.com/news/terminating-horizon380637.aspx|accessdate=13 August 2016|publisher=Maritime Activity Reports, Inc.|date=November 12, 2014}}</ref> The company had previously reduced its Puerto Rico service in an effort to reduce costs. The sale of the last part of the company was finalized on 29 May 2015.{{r|Schwing}}

==References== {{Reflist|refs=

<ref name=Schwing>{{cite news | last =Schwing | first =Emily | title =With Matson acquisition final, Horizon Lines no longer exists | newspaper =KTOO | location =Juneau, United States | pages = | publisher = | date =5 June 2015 | url =http://www.ktoo.org/2015/06/05/matson-acquisition-final-horizon-lines-no-longer-exists/ | accessdate = 5 June 2015}}</ref>

}}

==External links== * [http://www.horizonlines.com Official website]

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Category:Defunct shipping companies of the United States Category:Defunct companies based in North Carolina Category:Transport companies established in 1956 Category:American companies disestablished in 2015 Category:1956 establishments in North Carolina Category:2015 disestablishments in North Carolina Category:Economy of Anchorage, Alaska Category:American companies established in 1956 Category: Companies formerly listed on the New York Stock Exchange