Maersk, Hapag-Lloyd begin Gemini Cooperation amid changing shipping landscape

GLOBAL – Maersk A/S and Hapag-Lloyd AG have officially launched their operational partnership, Gemini Cooperation, on February 1.

This collaboration will involve around 340 vessels, which will gradually transition to the new network over the coming months. The first sailings under the revised schedule also commenced on the same day.

Johan Sigsgaard, Chief Product Officer of Ocean at Maersk, emphasized that the transition has been carefully planned to minimize disruptions.

“The transition has been planned to ensure a smooth shift for customers,” he said. The network is expected to achieve a schedule reliability of over 90 percent once fully integrated.

The transition will continue until late May, during which vessels will gradually shift to Gemini Cooperation as Maersk and Hapag-Lloyd exit their existing agreements with other carriers.

By June, all vessels will operate under the new schedule, covering East-West trade routes. The network will consist of 29 ocean mainliner services and 28 intraregional shuttle services.

The restructuring of alliances is taking place as the global shipping industry adapts to economic shifts, geopolitical tensions, and logistical challenges.

The UN Conference on Trade and Development (UNCTAD) reported that maritime trade volumes reached 12,292 million tonnes in 2023, reflecting a 2.4 percent increase after a decline in 2022.

“Global maritime trade outperformed expectations in 2023 due to easing pressures on the global economy and better-than-expected economic performance in large economies,” UNCTAD stated in its 2024 Review of Maritime Transport.

The report projects maritime trade volume to expand by two percent in 2024 and containerized trade by 3.5 percent.

With major carriers making adjustments, the 2M alliance between MSC Mediterranean Shipping Company and Maersk has ended after a decade.

MSC has opted to operate independently, while Maersk has partnered with Hapag-Lloyd for Gemini Cooperation. Meanwhile, the OCEAN Alliance, which includes CMA CGM, COSCO, OOCL, and Evergreen, has extended its agreement by five years until 2032.

Another significant collaboration, the Premier Alliance, now consists of HMM, ONE, and Yang Ming.

Hapag-Lloyd CEO Rolf Habben Jansen highlighted the operational improvements that Gemini Cooperation is expected to bring.

“We’ve developed an innovative hub & spoke system that is set to redefine ocean shipping,” he said. “With around 340 vessels connecting the East and the West, this new network delivers significant improvements in reliability, connectivity, and sustainability.”

Jansen added that the alliance aims for an industry-leading reliability rate above 90 percent. “This is about meeting our customers’ most important need — dependability — and raising the quality standard across the industry.”

Beyond efficiency, Gemini Cooperation is also focused on environmentally responsible shipping. “By optimizing routes, deploying larger vessels, and reducing idling times, we are not only saving time and resources for our customers but also advancing our decarbonization efforts,” Jansen stated.

Other shipping collaborations are also taking shape. The Premier Alliance has announced sailings for its Asia-Europe, Transpacific, and Asia-Middle East trade routes.

It has also entered into a slot exchange agreement with MSC, covering nine services in the Asia-North Europe and Mediterranean trade lanes.

ZIM, another global shipping company, has signed a three-year operational agreement with MSC, involving slot swaps and vessel-sharing agreements.

The cooperation covers six services and will strengthen connections between Asia and ports in the US East Coast, Mexico’s West Coast, the Caribbean, and the US Gulf.

Kuehne+Nagel, a major logistics provider, acknowledged the challenges of the transition period. “We anticipate that carrier schedule and service information for the affected trade lanes may become volatile and even more prone to errors than usual. Understanding these changes is crucial to anticipate potential delays and adjust your shipping strategies accordingly.”

With these industry shifts, MSC remains the largest carrier by container capacity. According to Alphaliner data, MSC holds a 20.3 percent market share with a total capacity of 6.39 million twenty-foot equivalent units (TEUs) as of February 1, 2025.

Maersk follows with a 14.2 percent market share, amounting to 4.47 million TEUs, while CMA CGM ranks third with a 12.3 percent share at 3.86 million TEUs.

As shipping alliances and trade routes continue to evolve, companies are adjusting their strategies to maintain efficiency and meet global demand.

 

Newer Post

Thumbnail for Maersk, Hapag-Lloyd begin Gemini Cooperation amid changing shipping landscape

Ethiopia’s Bahir Dar flower farms gear up for Valentine’s Day surge

Older Post

Thumbnail for Maersk, Hapag-Lloyd begin Gemini Cooperation amid changing shipping landscape

KLM/MartinAir suspension affects Zimbabwe’s horticulture exports

Be the first to leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *