Horizon to start US coastal service later this year

2008-5-2

Horizon Lines says it has five vessels of between 1,200 and 1,500 TEU that would be immediately available to provide US coastal services later this year. The ships had been displaced in the last couple of years by larger 2,800-TEU vessels, reports Lloyd's List.

Shortsea and feeder cargo services are said to be a rarity in the US despite their popularity in Europe and other parts of the world that make greater use of inland and coastal waterways, particularly as it helps to reduce fuel costs.

But Horizon CEO Chuck Raymond believes the time is now right to start moving more freight by ship along both US east and west coasts. His plan would call for sea freight, domestic trailers and ro-ro cargo to be transported by ship rather than road or rail, helping to ease traffic congestion in port areas.

Horizon is focusing on the US east coast first, where there is already a good port infrastructure, with many harbours having water deep enough to handle coastal shipping vessels, and are able to accept containers transhipped from transatlantic services.

"Not a lot needs to be done as far as international containers are concerned," said Mr Raymond while adding that more investment may be needed to develop facilities to handle extra long truck loads.

Domestic coastal services would not be open to foreign carriers, with the Jones Act limiting access to those lines operating US-built, flagged and manned tonnage.

Horizon operates services in the Puerto Rican, Alaskan, and Hawaii/Guam domestic trades, and has a number of possible routes along the US Atlantic and Gulf coasts under consideration.

Source: Schednet
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