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Horizon Lines Inc. has reduced its recent fuel surcharge for shipments between the U.S. mainland and Hawaii after its main competitor declined to match its price hike.

Horizon, Hawaii's second-largest ocean shipper, announced that it has lowered its fee to match that of its main rival Matson Navigation Company, after previously saying that it would raise the surcharge by 4.5 percentage points - or 11.8 percent - to a record 42.75 percent.

The company said that it would now boost the surcharge by 4 percentage points from 38.25 percent to 42.25 percent, an increase of 10 percent. The changes are due to come into effect on Monday September 1st, a day after Matson raises its fee to the same rate as Horizon.

On its website, the company said "Horizon Lines is continuing to closely monitor fuel costs and will adjust the Fuel Surcharge as trends warrant."

Horizon Lines has also amended its recent fuel surcharge covering its Guam service route to equal the fee charged by Matson. Effective Monday, September 1st 2008, the fuel surcharge will increase by 4.0 percentage points, from 39.75 percent to 43.75 percent, a rise of 10 percent. The company had planned to raise the fee by 4.5 percentage points - or 11.3 percent - to 44.25 percent.

It is the second time this year Horizon has lowered its rates to match those of its main competitor.