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The Honolulu Advertiser

Updated at 6:56 p.m., Wednesday, July 25, 2007

Horizon Lines raising fuel surcharge to Hawaii

By Robbie Dingeman
Advertiser Staff Writer

Horizon Lines, Hawai'i's No. 2 shipping company, said yesterday it will raise the fuel surcharge for its Hawai'i and Guam service by 1.5 percentage points to 24 percent, effective Aug. 20.

This follows Matson Navigation Co.'s announcement last week that it would raise the fuel surcharge by the same amount.

The amended fuel surcharge was filed Tuesday with the Surface Transportation Board and covers shipments moving between the Mainland and Hawai'i and Guam.

In a letter to customers, Horizon Lines said the "fuel surcharge adjustment is the result of yet another significant upward trend in fuel costs over the past few weeks." Matson also traced the increase to rising energy costs.

"While this latest upward trend has been felt in many areas of our business, this latest trend has been driven by bunker used to operate our vessels," officials said.

The company cited escalation of bunker oil costs worldwide. "Unfortunately, the fuel surcharge must be adjusted to offset a portion of this increased cost," officials said.

Horizon said fuel costs are forecast to remain at this level "or move higher as we move through the summer season and into the fall." The letter assured customers that "Horizon Lines understands that this adjustment impacts your cost of doing business, just as these fuel cost increases have affected our cost of providing service. Horizon Lines commits to vigilantly monitor fuel costs and adjust the fuel surcharge as trends warrant. "

Hawaii Superferry, which is scheduled to begin service next month between O'ahu and Maui, and O'ahu and Kaua'i, is adding a 30.8 percent fuel surcharge to its fares.