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Hawaii's second-largest ocean shipper, Horizon Lines Inc. has reported a net loss of $(10.0) million, or $(0.33) per share, for the first fiscal quarter ended March 22 2009, despite a decline in fuel costs during the period.

Operating revenue declined 11.0 percent to $272.4 million from $305.9 million a year ago. The company said the largest factor in the decline was reduced fuel surcharges resulting from lower fuel prices, followed by a 7.1 percent overall volume decrease.

The volume decline was due primarily to the sharp economic slowdown in Hawaii, a continuing recession in Puerto Rico and a severe winter in Alaska. The drop in volume was partially offset by revenue per container improvements in all tradelanes. Revenue per container increased by $107, or 3.3 percent, net of fuel, from the prior year.

The operating loss for the first quarter of 2009 totaled $(0.8) million, compared with operating income of $11.6 million for the first quarter of 2008. Meanwhile, the adjusted operating income totaled $4.4 million for the first quarter. The decline from last year was said to be largely due to reduced volumes and lower non-transportation revenue, which were partially offset by reduced fuel costs.

Commenting on the results, Chuck Raymond, Chairman, President and Chief Executive Officer of Horizon Lines said "As we look forward, we expect continued modest container rate increases, lower fuel prices and other costs reductions to help offset anticipated slight volume declines for the year. Our market shares appear to be holding steady in all three tradelanes as we remain focused on customer service excellence, while continuing to drive costs out of our business.

"We believe we are well positioned to withstand a prolonged economic slowdown, and to participate in the benefits of an economic recovery when it occurs," Mr. Raymond continued.

"We primarily serve the U.S. domestic ocean markets, carrying cargo vital to the basic needs of our trade lanes. While this doesn't make us recession proof, we believe it makes us somewhat recession resistant. We are aligned with diverse, large, brand-name companies as well as with several agencies of the U.S. government. And we are financially stable, with no anticipated recapitalization needs until 2012."