Horizon Lines, the state's No. 2 shipper, said it will raise its basic rate and terminal handling charge on Jan. 1.

The 3.3 percent increase in Horizon's basic rate matches a rate increase announced last week by Matson Navigation Co., the state's leading shipping company. Matson will raise its basic rate and terminal handling charge effective Jan. 1.

In a letter to customers, Horizon said it will raise rates for its Hawai'i service by $100 per westbound container and by $175 for shipments transported by rail from inland points on the Mainland. Horizon will also match Matson's terminal handling charge increase of $150 per container for shipments to Hawai'i and $75 for shipments to the Mainland.

Horizon said the rate increase will help offset cost increases and major investments in the company's infrastructure, which include more than $9.5 million in facility improvements. Horizon said it will also unveil a new vessel rotation in its Hawai'i service this spring as a result of five new ships it will bring into the trade.

"Though the costs are significant, businesses in Hawai'i will enjoy enhanced service levels, and Horizon Lines will be poised to support economic growth in Hawai'i for many years to come," the company said.