Horizon Lines cited a "continued sharp downturn" in its Hawai'i shipping business as one of the factors in the company's fourth-quarter net loss.

The Charlotte, N.C.-based Horizon, the second largest shipping company servinc Hawaii lost $18.8 million, or 63 cents per diluted share, in the latest quarter. That compared with earnings of $10.7 million, or 32 cents per diluted share, in the same quarter a year earlier.

"Our company faced an extremely challenging environment in the fourth quarter, but we performed well under the circumstances," said Chuck Raymond, chairman, president and chief Executive officer.

"Volumes during the quarter were negatively impacted by the continued sharp downturn of our Hawai'i market, and ongoing weakness in Puerto Rico, which is in its third year of recession," Raymond said.