Horizon Lines, LLC (Horizon Lines) announced that it will file a General Rate Increase with the Surface Transportation Board to raise its ocean freight rates for the company's Hawaii service effective January 2, 2006. The amount of increase to be filed varies depending on a number of factors, including rate basis of the ocean freight and the direction and mode of transport.

Westbound rates for shipments originating on the US mainland from either port terminals or inland points served by truck will increase by $125 per container. Rates for shipments originating on the U.S. mainland from inland points served by rail will increase by $385 per container.

Eastbound rates for shipments originating in Hawaii to either U.S. mainland port terminals or inland points served by truck will increase by $75 per container. Rates for shipments originating in Hawaii to inland points on the US mainland served by rail will increase by $335 per container.

The ocean freight increases are necessary to offset increased barge and inland expenses, contractual labor costs, and increased capital spending to upgrade the Horizon Lines' container fleet and terminals. Most recently, the company took delivery of an additional 1,000 new dry containers and 900 new refrigerated containers.

In addition, the company will increase its terminal handling charge by $60 per container for shipments to Hawaii and $30 per container for shipments from Hawaii, also effective January 2, 2006.