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Trans-Pacific liner service to reach inland U.S. cities in December
Horizon Lines plans to start express shipment of intermodal containers to several inland U.S. cities when it begins its Five Star Express trans-Pacific liner service from China next month.
The largest U.S. Jones Act carrier made the announcement Monday in Shanghai during a press conference here for China news media.
The maiden FSX voyage is scheduled to depart Ningbo, China, on Dec. 14, 2010 and from Shanghai on Dec.15 and arrive in Los Angeles on Dec. 26. Approximately 60 percent of the initial voyage is already subscribed as the company continues to make steady progress toward its goal of 75 percent bookings for the first sailing.
"As other carriers reduce service locations and slow service speeds, U.S. shippers continue to tell us they want fast and reliable service alternatives not only port-to-port, but inland to final destinations as well," said Brian Taylor, senior vice president of International Services at Horizon Lines, in a presentation to journalists. "At a time when U.S. retailers are maintaining lower inventory levels and placing more logistics responsibilities on their manufacturing partners here in China, our Five Star Express service offers a fast and reliable transit schedule to keep supply chains running smoothly."
Horizon Lines said it will offer some of the fastest inland transit times in the industry, including 15-day availability in Kansas City from Shanghai and 16-day availability in Dallas, using scheduled intermodal rail service from Los Angeles every week.
The carrier also will offer express inland service to Chicago, Memphis, Atlanta and Charlotte using on-dock rail connections to avoid drayage fees on the West Coast.
The carrier said it plans to expand the inland express network to other locations throughout the U.S. next year.
Horizon Lines said it can offer inland service because of operational synergies with its domestic U.S. shipping network serving export customers to Puerto Rico, Alaska, Hawaii and Guam. It said delivering imports inland to these markets will provide a more stable supply of containers in locations where many shippers struggle to find available container capacity.
"We do not operate in a one-size-fits-all supply chain," Taylor said. "Our niche focus to provide reliable scheduling, fast transits and quality customer service offers a compelling alternative in the market at the right time."
The new service will use five 2,824-TEU, 23-knot ships that now call at Guam in Horizon’s domestic service and continue on to China. Maersk now charters space on the vessels from Guam to China and from Chinese ports to the U.S. This trans-Pacific service has been in place since December 1999. Once this agreement expires on Dec. 10, the carrier will begin transporting general cargo from Ningbo and Shanghai to the U.S.
Source: JOC |