Horizon Lines posted a net loss of US$10m in the first quarter of 2009 as low cargo demand and poor weather affected performance across the company''s trade lanes.

Chuck Raymond CEO of the Jones Act carrier said the operating environment remained hugely challenging.

"Volume declines during the quarter exceeded historic seasonal softness due to the continued sharp slowdown of our Hawaii market, ongoing economic stagnation in Puerto Rico, and a severe winter in Alaska," he said.

Horizon saw revenues fall from $305.9m in the first three months of 2008 to $272.4m in the same period of this year.

Raymond said he expected continued modest container rate increases, lower fuel prices and other cost reductions to help offset anticipated volume declines for the year.

However, the New York-listed company said it would not issue specific annual financial guidance in the year ahead such was the extent of market uncertainty.

"We will evaluate this position again at the end of the second quarter," he said.

Subsidiary, Horizon Logistics, which has been attempting to establish itself as a global player in the NVOCC market, also reported a loss for the quarter.

"We are optimistic that results will improve throughout the remainder of the year, however, as logistics continues to build its pipeline of new business," said Raymond.