Better Cooperation Seen Necessary to Address Trade Security in 2007

Horizon Lines chairman points to rising debate; cites solutions already in place that can improve trade and port security

Linthicum, MD — December 4, 2006 — Greater cooperation is necessary between all segments of the container industry and the government to achieve real results in trade security next year, according to Charles G. "Chuck" Raymond, chairman, president and CEO of Horizon Lines, speaking before an alumni gathering of the U.S. Merchant Marine Academy at King's Point last Friday.

"We will hear a lot about this issue in months to come," Raymond said. "A new Congress is already preparing the debate over problems we face at home and abroad, at our ports and in the containers that bring us the consumer goods that drive our economy. You will hear a lot about 100 percent inspection. You will listen to talk about the many challenges we face in international port security. I hope we will begin to see some real results."

The industry needs to come together — shippers, carriers and labor — to educate Washington on information technology and processes already in place that can improve trade and port security, he said.

"The good news about trade security is that effective solutions exist today. At Horizon Lines, we are already working on these solutions, leveraging investments we have made in our operations systems and in new technology, such as RFID," Raymond said. "The good news is that our work is proving we will deliver value beyond safety. We will deliver efficiency for our customers.

"The technology that can make trade safer can make trade more efficient," he continued. "To us, that represents the next great innovation in container shipping."

Pointing to an example of solutions already in existence today, Raymond told attendees about an intermodal active radio frequency identification (RFID) solution for end-to-end real-time shipment visibility Horizon implemented this year in the Alaska trade. The system was engineered and implemented by Horizon Services Group, the information technology research and development arm of Horizon Lines.

The active RFID-based real-time tracking system, integrated with Horizon's Web-based event management system, offers shippers greater shipment visibility and the potential for cost savings from tighter inventory control and real-time shipment information throughout the container's transit from origin to final destination, according to Horizon.