Horizon Lines to stop trans-Pacific container service

Monday, 31 October 2011 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shipping company Horizon Lines Inc said it will discontinue its Five Star Express (FSX) trans-Pacific container shipping service as it looks to focus on its core domestic services.

The company will stop all operations related to FSX service during the fourth quarter and said it will record a pre-tax restructuring charge of $ 105-$ 110 million.

The FSX service offers eastbound transit between China and the US West Coast.

Eastbound freight rates from China to the United States have fallen more than 37 per cent in the past 12 months, the company said in a statement.

Horizon said it will mitigate any supply chain disruptions to customers due to termination of the FSX service and said there will be no impact on its domestic ocean services in Alaska, Hawaii, or Puerto Rico.