August 9, 2006

PUERTO RICO SERVICE ANNOUNCEMENT

Bunker Fuel Surcharge effective September 3,2006

Dear Valued Customer:

Continued international uncertainty and restricted supply combined with steady demand has driven spot prices for petroleum products higher impacting our costs for vessel bunker fuel.

Effective September 3rd, 2006, we will increase our bunker fuel surcharge from $395 to $410 per load.

If you have any questions, please contact your Horizon Lines Sales representative or Customer Service, 1-877-678-7447.

Thank you for choosing Horizon Lines.