Horizon Lines - Competitor Review
- Horizon Lines (part 1) report written 12/15/2007
- Part 2 - Risk Detail
- Part 3 - Possible Upside
- Part 4 - Competitor Review
- Part 5 - Valuation and Assessment
- Part 6 - Management & Performance Targets
Horizon doesn't have a direct competitor for comparison as it is the only Jones Act shipper to service all three non-contiguous US ports (Puerto Rico, Hawaii/Guam, Alaska). The competitors listed below are also Jones Act shippers but have other operations and/or focus.
Alexander & Baldwin (Matson) - Hawaii-based operator with operations in sugar & real estate
- Pros
- Largest Jones Act shipper in the Hawaii market
- Produces 3% of U.S. sugar output
- Hawaiian real estate may not be as vulnerable as contiguous US real estate
- Cons
- Heavy focus on automobile cargo, which is lower margin
- Rising fuel costs affecting all shippers
- Entry into foreign markets without Jones Act protection
- Exposure to US housing market.
- Sugar market has not performed like other commodities in recent years.
Kirby Corporation - Inland tank barge carrier focused mainly on petrochemical liquids transportation with some operations in diesel engine services.
- Pros
- Market leader in inland transport of petrochemicals.
- Diesel engine segment may experience growth as economies focus on climate change and energy efficiency.
- Petrochemical shipping is more resistant to economic slowdowns.
- Cons
- Higher capex costs due to large and aging fleet
- 25% of business from 2 customers: Dow Chemicals & ExxonMobil
Go to Part 5 - Valuation and Assessment of this report.
DISCLOSURE: Please see our portfolio page for all disclosures.
This report reflects the research and analysis I've performed on this company. It is provided for informational purposes only and does not constitute personalized financial advice nor an endorsement or solicitation to purchase stock in this or any other company. Please do your own due diligence or hire a financial advisor before making any investment decisions.
The author received no compensation and is not affiliated with the company reviewed in this report with the possible exception of being a shareholder. The author reserves the right to buy or sell the stock as deemed personally prudent without further notification
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