Horizon Lines names Puerto Rico manager

Horizon Lines Inc. has named Jacob M. Wegrzyn senior vice president and general manager of its Puerto Rico services division.

Wegrzyn will have primary responsibility for operational, sales and strategic activities related to the Puerto Rico market. He joins Horizon Lines with more than 18 years experience in the transportation and distribution industry in Puerto Rico. Most recently he served as vice president of Puerto Rico and Caribbean service, for New Penn Motor Express, domiciled in Bo Amelia, Puerto Rico.

Wegrzyn's appointment follows the late May announcement by the container carrier that it has placed six employees on administrative leave as a result of an internal review of issues raised by a U.S. Justice Department investigation. Three of the six employees subsequently submitted their resignations.

In April the Justice Department said it was investigating possible anticompetitive practices in the coastal freight shipping industry. Government investigators have also seized or requested records from other container carriers in the Puerto Rico trade -- Sea Star, Crowley Maritime and Trailer Bridge. Alexander & Baldwin, owner of U.S. mainland to Hawaii carrier Matson Navigation, was also served with a grand jury subpoena related to the Jones Act pricing investigation.

News of the government investigation has also sparked civil lawsuits against carriers in the Jones Act trades.

Horizon Lines said in an 8-K filing with the Securities and Exchange Commission that as of May 29 it is now aware of 19 civil lawsuits purporting to be class actions that had been filed against the company and other domestic shipping carriers, seeking damages for alleged violations of the antitrust laws.

Horizon said, It is not possible to predict the outcome of these lawsuits, or whether additional lawsuits may be filed, and that it is not possible to estimate the amount or range of loss that could result from unfavorable outcomes in these proceedings. Adverse results could be material to the company's results from operations, financial condition, and cash flows.

Source: American Shipper