Horizon Lines reported its revenue in the third quarter of 2013 dropped 2.1 percent year-over-year to $273.7 million, caused by an $8.0 million volume contraction and lower fuel surcharges of $5.4 million.
Quarterly container volume reached 59,059 revenue loads, down 4.0 percent from 61,514 loads, primarily driven by the reduced number of sailings between Jacksonville, Fla., and San Juan, Puerto Rico, the carrier said. Furthermore, unit revenue per container totaled $4,236 in the 2013 third quarter, down from $4,245 a year ago; third-quarter unit revenue per container, net of fuel surcharges, was $3,263, up 1.4% from $3,218 a year ago. Vessel fuel costs averaged $642 per metric ton in the third quarter, 1.1 percent below the average price of $649 per ton in the same quarter a year ago.
The declines were partially offset by a $4.7 million increase in non-transportation revenue, related to certain service agreements and terminal services, as well as a $2.8 million increase in container revenue rates, Horizon Lines said. Net income in the third quarter was $4.1 million, jumping year-over-year from $1.9 million.
In the first nine months of 2013, Horizon Lines posted a net loss of $17.8 million, compared with a net loss of $76.7 million in the same period last year. Revenue from January to September decreased 4.4 percent to $777.9 million, from $813.9 million.
For the full year of 2013, the container line’s management expects revenue container volume to be below 2012 levels, mostly because of the elimination of one weekly sailing between Jacksonville and San Juan. However, the addition of a biweekly Jacksonville sailing to southbound service between Houston and San Juan is allowing the company to capture incremental volume while utilizing an in-service vessel, the company said. As a result, container rates are predicted to increase “marginally.”
Furthermore, the company expects costs associated with vessel leasing and dry docking will be lower than last year. Horizon Lines also forecast overhead savings with the reduction of its non-union workforce.
As a result of these factors, management expects 2013 financial results to exceed 2012 results.