The Gemini Cooperation, an operational alliance between shipping giants Maersk and Hapag-Lloyd, has been approved by the Federal Maritime Commission (FMC). Initially halted in July due to concerns over competitive impacts, the agreement took effect on Monday, according to an FMC press release.
Gemini Cooperation: A New Era in Shipping
The Gemini Cooperation is set to launch shortly after the expiration of Maersk’s 2M alliance with MSC in January 2025. The new alliance will pool a fleet of approximately 290 vessels, offering a combined capacity of 3.4 million TEUs. Maersk will deploy 60% of this capacity, with Hapag-Lloyd contributing the remaining 40%.
Implications for the Shipping Industry
The Gemini Cooperation will cover seven trade lanes, including Asia – U.S. West Coast, Asia – U.S. East Coast, and Transatlantic routes. It will offer 58 new services and around 6,000 port-to-port combinations. The alliance aims to achieve 90% schedule reliability through fewer port calls, simplified vessel operator structure, and a higher share of calls at APM terminals’ hubs.
The agreement comes into effect a month after the end of the 2M alliance, leaving THE Alliance, which includes Ocean Network Express, Yang-Ming, HMM, and Hapag-Lloyd, in a vulnerable position. This development puts pressure on other carriers such as CMA-CGM, COSCO, Evergreen, and OOCL, who are part of the Ocean Alliance, to reassess their current setups.
The Gemini Cooperation between Maersk and Hapag-Lloyd is a significant development in the shipping industry, with the Federal Maritime Commission’s approval marking a new chapter in global logistics. As the alliance launches and reshapes trade lanes, other major carriers will need to adapt to the changing landscape to remain competitive.
