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Horizon Lines is a maritime transport and logistics company. It is the only Jones Act shipper to serve the 3 non-contiguous regions of Puerto Rico, Alaska and Hawaii. In addition, the company also ships to Guam as well as Asia as part of an agreement with Moller Maersk.[1]
Business
Competitors
Horizon doesn't have a direct competitor for comparison as it is the only Jones Act shipper to service all three non-contiguous US ports (Puerto Rico, Hawaii/Guam, Alaska). The competitors listed below are also Jones Act shippers but have other operations and/or focus.
Alexander & Baldwin - Hawaii-based operator with operations in sugar & real estate:
- Largest Jones Act shipper in the Hawaii market
- Produces 3% of U.S. sugar output
- Hawaiian real estate may not be as vulnerable as contiguous US real estate
- Heavy focus on automobile cargo, which is lower margin
- Rising fuel costs affecting all shippers
- Entry into foreign markets without Jones Act protection
- Exposure to US housing market.
- Sugar market has not performed like other commodities in recent years.
Kirby (KEX) - Inland tank barge carrier focused mainly on petrochemical liquids transportation with some operations in diesel engine services.
- Market leader in inland transport of petrochemicals.
- Diesel engine segment may experience growth as economies focus on climate change and energy efficiency.
- Petrochemical shipping is more resistant to economic slowdowns.
- Higher capex costs due to large and aging fleet
- 25% of business from 2 customers: Dow Chemicals & ExxonMobil[2]
References
