Maersk and Hapag-Lloyd have announced they are creating a new shipping alliance. In a statement yesterday, Wednesday 17th January, Maersk and Hapag-Lloyd said that they were establishing “a long-term operational collaboration…called the ‘Gemini Cooperation’….this will be established from February 2025, immediately after the conclusion of our current 2M Alliance”.
The reference at the end of this statement is to the existing alliance that Maersk has with MSC, that is scheduled to end on January 2025. Hapag-Lloyd stated that the Gemini Cooperation’ would use “290 vessels with a combined capacity of 3.4 million containers (TEU); Maersk will deploy 60% and Hapag-Lloyd 40%”.
This new alliance will apply to the 7 major East-West trades although North-South trades were not mentioned. The core trades will be supported by a network of trans-shipment hubs with 14 “shuttle services” in Europe, 4 in the Middle East, 13 in Asia and 1 in the Gulf of Mexico. Hapag-Lloyd also commented that the two companies have “set the ambitious target of delivering a schedule reliability of above 90% once the network is fully phased in. This objective is backed by a strong governance model and contractual obligations”.
It is probably reasonable to state that this development was not anticipated by many in the sector. As mentioned, Maersk had announced its intended withdrawal from its ‘2M’ alliance with MSC, something that seemed to indicate that it had become unconvinced about the merits of alliances. Apparently, the latter is not the case, rather it might be suggested that Maersk is responding to the growth of MSC and its displacement of Maersk as the largest container-line by capacity.
The creation of the ‘Gemini Cooperation’ also means that Hapag Lloyd will leave the THE Alliance, something that may leave the other members in a difficult position. It means that some shippers will be faced with a changed landscape for shipping suppliers, with two particularly service orientated providers reduced to just one on many key trades. Although the importance of such vessel sharing agreements should not be exaggerated, this move may edge forward some further consolidation in the container shipping sector.
Author: Thomas Cullen
Source: Ti Insights
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