Horizon Lines Reaches Agreement with CSX on Reduced Vessel Charter Payments

News Release Horizon Lines, Inc. (Corporate Headquarters) May 2, 2011

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CHARLOTTE, NC (May 2, 2011) -
Horizon Lines, Inc. (NYSE: HRZ) today announced that it has
finalized an agreement with CSX Corporation to reduce charter payments on three
vessels leased from CSX.
 
Under the agreement, charter hire expense has been reduced by
$3 million annually, retroactive to January 2011, through the January 2015
expiration of the charter.  The agreement represents a total
savings of $12 million for Horizon Lines over the remaining life of the
charter.  The three chartered vessels, the Horizon Anchorage,
Horizon Tacoma, and Horizon Kodiak, serve in the Alaska tradelane and were built
in 1987.
 
"We greatly appreciate the willingness of CSX to provide
meaningful financial assistance as we work to refinance our debt and position
Horizon Lines for long-term success," said Michael T. Avara, Executive Vice
President and Chief Financial Officer.  "As our former parent
company, CSX remains a valued and very important business partner."
 
The reduction in charter hire expense of $3 million this year
that was achieved by the finalization of this agreement was previously included
in company estimated 2011 cost-savings projections of $18 million or
greater.  
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