New York to Lose Horizon as Carrier Decides on Philadelphia

Horizon Lines will shift its Northeast U.S. port call for its Puerto Rico service from Elizabeth, N.J., to Philadelphia’s Packer Avenue Terminal.

The domestic Jones Act carrier’s first northbound sailing to Philadelphia is scheduled to depart San Juan on April 7 and arrive on April 11. The first southbound sailing is expected to leave Philadelphia on April 11 and arrive in San Juan on April 15.

Service schedules between Jacksonville, Fla., Houston, Texas and San Juan remain unchanged.

Horizon said it chose Philadelphia “to better serve its customers and improve cost efficiencies.”

The company considered moving its New York-New Jersey operations from Elizabeth to Philadelphia several years ago but decided against the move after reviewing costs.

Horizon said it expects to record a restructuring charge of approximately $6 million during the first half of 2013, primarily because of the estimated liability for withdrawal from the International Longshoremen’s Association-New York Shipping Association multi-employer pension plan.

Richard Rodriguez, vice president and general manager, Puerto Rico, said Philadelphia will provide customers with the “fastest transit times, quickest turn times, a comprehensive intermodal network, expedited inspections, and improved warehousing and transloading capabilities. We also project that the move will yield long-term cost efficiencies for our Puerto Rico operation.”

Crowley Liner Services, Horizon’s chief competitor between the Northeast and Puerto Rico, calls at Pennsauken, N.J., across the Delaware River from Philadelphia.

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