The Gemini Cooperation, a vessel-sharing partnership between Maersk and Hapag-Lloyd, is set to commence on February 1, 2025. The companies have chosen to initiate their collaboration by utilizing the Cape of Good Hope network, as per a customer notice issued by Maersk on October 9, 2024. This decision suggests an anticipation of continued instability in the Red Sea region.
Safety Concerns Dictate Route Selection
In September 2024, the two shipping lines unveiled their new partnership, which proposed two alternative east-work networks based on the accessibility of the Red Sea. However, due to ongoing safety issues along the shorter transit, the companies have opted for the longer route around the Cape of Good Hope.
Red Sea Conflict Impacts Container Industry
Since late 2023, Houthi attacks in the Red Sea have compelled container vessels to navigate around southern Africa. This diversion has absorbed some of the vessel overcapacity in the container industry, subsequently boosting container rates. Maersk had previously predicted in August 2024 that the conflict would persist at least until the end of that year.
The situation remains fluid, and both Hapag-Lloyd and Maersk have expressed their intention to return to the Red Sea when it is safe to do so.
