Effective: March 23, 2008 & March 30, 2008

New Horizon Lines BFSC

PUERTO RICO SERVICE ANNOUNCEMENT

Dear Valued Customer:

In response to recently fluctuating bunker prices, Horizon Lines is increasing the Bunker Surcharge for our Puerto Rico Service.

For containers being loaded or discharged in Jacksonville, FL or Port Everglades, FL a bunker surcharge of $555 per container will be in effect starting March 30, 2008.

For containers being loaded or discharged in Elizabeth, NJ a bunker surcharge of $600 per container will be in effect starting March 23, 2008.

For containers being loaded or discharged in Houston, TX a bunker surcharge of $635 per container will be in effect starting March 23, 2008.

Horizon Lines will continue to monitor fuel prices and make necessary and fair adjustments in order to minimize the effects to our customer base as a whole.