February 5th, 2007

PUERTO RICO SERVICE ANNOUNCEMENT

Port Security Surcharge Increase Effective 4-1-2007

Dear Valued Customer:

Horizon Lines will increase its Port Security Surcharge by $20 per container to $95 per container to meet the increased security standards required by the Department of Homeland Security and the United States Coast Guard. This increase will be effective Sunday, April 1st, 2007.

Increasing the security surcharge is a direct result of the increased cost we incur to remain compliant with standards intended to safeguard our customers’ freight and ensure the security of our ports and Nation.

Some of these costs include:

• Implementation of new TWIC program requirements as mandated by Federal Government
• Acquisition of Transportation Worker Identification Cards (TWIC) for all port personnel
• Training of Security Personnel in inspection of TWIC Credentials
• Increased Security Surcharges at our North American Terminals
• Continual maintenance and upgrade of existing security infrastructure
• Contractual increases in Security Contracts
• Continuous training of Vessel Personnel
• Continued Customs-Trade Partnership Against Terrorism (CTPAT) participation and USCG CFR 33 Compliance
  

Horizon Lines appreciates your support on these initiatives which are critical to our National Security. If you have any questions, please contact your Horizon Lines Sales Representative. Thank you for choosing Horizon Lines.