Horizon seeks surcharge hike

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

15 May 2008

The cost of shipping is expected to rise further in June, raising the possibility of yet another round of price increases for things you need at home or in your office or business. In the backdrop of crude oil prices exceeding $126 a barrel just a few days ago, Horizon Lines has announced it is asking the U.S. Surface Transportation Board to allow a fuel surcharge increase from 33.75 percent to 35.25 percent starting on June 8 for Guam and Hawaii. "This fuel surcharge adjustment is the result of the continued high and unprecedented levels of the cost of fuel," Horizon Lines wrote to customers May 9. "At this time, Horizon Lines sees no immediate relief in sight, as fuel costs are forecasted to remain either at this level or continue to escalate through the mid-year."
Horizon is one of two major ocean cargo carriers that bring most of the food, toys, household appliances, construction materials, cars and many other items to Guam.
Matson Navigation, the other major ocean cargo carrier serving Guam, has not announced a plan to increase its fuel surcharge.
But in April, Matson raised its fuel surcharge to 33.75 percent, which also is Horizon's current surcharge.
The surcharge is assessed on the main cost of shipping an item or items. For example, if the base freight rate to ship a certain volume of rice is $100, the fuel surcharge will be $35 starting in June, if shipped through Horizon.
That same $100 cost to ship rice to Guam meant a fuel surcharge of only $4 in 2001, based on Pacific Daily News files of shipping companies' fuel surcharges.

Source: Guampdn