Maersk, Hapag-Lloyd’s Gemini Corp. to set sail

The Federal Maritime Commission has approved a submission from Maersk and Hapag-Lloyd to create the Gemini Cooperation allowing the two companies to share vessels in the trades between the U.S. and Asia, the Middle East, and Europe.

The agreement was originally filed at the Commission May 31, 2024. The Commission issued a Request for Additional Information (RFAI) July 12, which required the filing parties to provide the data necessary for completing an economic analysis of the competitive effects of the agreement.

The agreement was reviewed by the agency under statutory timeframes pursuant to applicable sections of the law, to assess its likely competitive impacts and its compliance with other statutory requirements and prohibitions.

In January, Maersk released a statement saying as part of its “Network of the Future,” the company had entered a long-term operational collaboration with Hapag-Lloyd called the Gemini Cooperation, which will be implemented from February 2025, immediately after the conclusion of the current 2M Alliance.

Maersk said the 2M Alliance is still a highly reliable network for the east-west trades and MSC remains a valuable partner. Maersk will continue its collaboration with MSC between now and the end of the 2M agreement in January 2025, followed by a transition to the new Gemini network.

Maersk said its expertise, fleet, terminal asset base and network vision were complementary with Hapag-Lloyd’s, ensuring that the partnership would make a real difference to its customers, business and the wider industry.

The ambition is to reduce network complexity with mostly single operator loops and fewer port calls per service, and incorporate terminals with the highest level of productivity and operational efficiency.

The network will consist of 27 to 29  ocean mainliner services and an extensive network of interregional shuttle services. It covers the Asia-U.S. West Coast, Asia-U.S. East Coast, Asia-Middle East, Asia-Mediterranean, Asia-North Europe, Middle East-India-Europe and Transatlantic trade scopes.

Maersk said it will return to the Red Sea when it is sufficiently safe to do so. As the situation remains highly dynamic, the company will be prepared for either scenario. As such, it is presenting two network options in preparation of two scenarios – a return to the Red Sea, or a continuation of the alternative route south of the Cape of Good Hope. Irrespective of whether the Gemini partnership will begin with a Trans Suez or Cape or Good Hope network, the company’s ambition is to provide industry-leading reliability.