October 23rd, 2007

PUERTO RICO SERVICE ANNOUNCEMENT

Bunker Fuel Surcharge Increase -
Effective Sunday, November 11th, 2007

Dear Valued Customer:

In response to rapidly increasing bunker fuel costs, 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 $455 per container will be in effect starting November 11th, 2007.

For containers being loaded or discharged in Elizabeth, NJ or Houston, TX the bunker surcharge will be $475 per container will be in effect starting November 11th, 2007.

Horizon Lines is keenly aware of how these changes impact our customers. We 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.

If you have any questions, please contact your Horizon Lines Sales representative or Customer Service, 1-877-678-7447. Thank you for choosing Horizon Lines.