The Coast Guard has told Horizon Lines the carrier can convert two steam-powered ships to LNG and diesel propulsion in non-U.S. shipyards and still be able to operate the vessels in the Jones Act domestic trade.
Horizon had asked the Coast Guard for a letter confirming that work on the Horizon Spirit and Horizon Reliance could be done without jeopardizing the vessels’ Jones Act status.
The Coast Guard said that based on Horizon’s description of the proposed work, the ships would still qualify as U.S.-built and eligible for U.S.-flag domestic service.
Horizon Spirit and Horizon Reliance operate between the West Coast and Hawaii. They were built as LASH barge carriers for Waterman Steamship at Avondale Shipyards in New Orleans in 1980, and later were converted into container ships.