The company currently is evaluating specific port options and schedules.

Horizon Lines currently calls ports in China under its space-charter agreement with Maersk Line. Once that agreement expires on December 10, 2010, Horizon will begin transporting general cargo on behalf of direct commercial customers. Sales and marketing efforts for the service are underway.

The new trans-Pacific service will allow Horizon Lines to continue to serve an expanding military presence in Guam, where trade is expected to grow significantly in coming years. The new Asia service will be integrated with the company's expanded warehousing and distribution capabilities on the U.S. West Coast to create an integrated import/export solution.

"After looking at the various alternatives for our Hunter-class vessels, our management team determined that an Asia service offers the best potential for long-term growth," said Brian Taylor, Senior Vice President of Horizon's International Services, who will be overseeing the Asia expansion.

"The trans-Pacific trade, consisting primarily of China-U.S. commerce, continues to be the largest and most dynamic market in the world. More than 18 million TEUs moved between the United States and China in 2009 and that is expected to increase again this year."

"We believe we are entering the market at an opportune time," Mr. Taylor continued. "China continues to serve as a global economic engine. Burned by sudden capacity shortages over the past four to six months, U.S. importers are looking to diversify their ocean shipping contracts, adding alternatives for peak season capacity and seeking more stable pricing. We will actively engage with our customers during the current trans-Pacific contract season to fully capitalize on these opportunities as a niche player recognized for schedule integrity and customer service."