Maersk, Hapag-Lloyd launch new ‘Gemini Cooperation’ partnership

Maersk A/S and Hapag-Lloyd AG have announced a new operational partnership named the “Gemini Cooperation,” set to commence in February 2025. This strategic collaboration will establish a robust global “hub-and-spoke” network, utilizing owned or controlled terminals in key locations worldwide. The partnership follows Hapag-Lloyd’s exit from THE Alliance and Maersk’s dissolution of the 2M Alliance with Mediterranean Shipping Co. (MSC).

The Gemini Cooperation will deploy a fleet of 290 vessels with a combined capacity of 3.4 million TEUs (twenty-foot equivalent units). Maersk will contribute 60% of the fleet, while Hapag-Lloyd will supply 40%. The partnership will cover seven major global trade lanes and provide 26 mainline services, complemented by 32 regional shuttle services to ensure seamless connections between key hubs and major ports.

A key objective of the Gemini Cooperation is to achieve a schedule reliability of over 90%, a target that has not been consistently met in recent years. Hapag-Lloyd CEO Rolf Habben Jansen emphasized the importance of an efficient network at scale, supported by controlled hubs and terminals. This structure will allow for streamlined port calls, reduced delays, and enhanced resilience to external disruptions. The Gemini network will feature 12 terminal hubs located in Asia, the Middle East, the Mediterranean, North Europe, and North and South America.

The partnership is designed to last three years, with a 12-month notice period required if either party wishes to withdraw. Both Maersk and Hapag-Lloyd will continue to operate other services outside the Gemini network, using capacity not allocated to this new collaboration. Maersk, currently the world’s second-largest container shipping line with over 4 million TEUs, and Hapag-Lloyd, ranked sixth with 1.8 million TEUs, will jointly aim to set new standards for reliability in the industry.

Habben Jansen expressed confidence in the network’s ability to achieve the ambitious reliability targets, citing the controlled hubs and dedicated shuttle services as critical factors. The Gemini network will include two to three main port calls per region, significantly reducing the risks of delays. By controlling hub terminals, the partnership will have greater control over priority and waiting times, ensuring that shuttle services operate with high frequency between hubs and final destinations.

Preliminary ocean schedules for the Gemini network will be released in the third quarter of 2024, with full operating schedules available by the fourth quarter. During this transition period, Maersk will continue to collaborate with MSC under the 2M agreement until its expiration in January 2025, ensuring a smooth shift to the Gemini network.

Maersk CEO Vincent Clerc highlighted the strategic value of the partnership, emphasizing that it would raise the bar for reliability in the industry and strengthen Maersk’s integrated logistics offerings. Despite differences in strategic focus, with Hapag-Lloyd being more of a pure ocean player and Maersk focusing on end-to-end solutions, both companies share common goals in quality and sustainability.

Hapag-Lloyd’s exit from THE Alliance will significantly impact the alliance, which also includes Ocean Network Express (ONE), Yang Ming, and HMM. Without Hapag-Lloyd, THE Alliance will lose 25% of its capacity, leading to a potential reorientation of the remaining members. Industry analysts, including Lars Jensen, CEO of Vespucci Maritime, have suggested that THE Alliance may face challenges in maintaining a competitive network against Ocean Alliance, MSC, and the newly formed Gemini Cooperation.

👉Key Point:

🚢 New Strategic Partnership: Maersk and Hapag-Lloyd announced the “Gemini Cooperation,” a new operational partnership that will launch in February 2025. This partnership marks a significant shift in the shipping industry, focusing on a “hub-and-spoke” network of terminals globally to enhance schedule reliability and operational efficiency.
📅 Transition from THE Alliance: Hapag-Lloyd will exit THE Alliance, a longstanding partnership, to join forces with Maersk. This move comes as the Maersk-Mediterranean Shipping Co. 2M Alliance is set to dissolve. The Gemini Cooperation will manage a combined fleet of 290 vessels with a capacity of 3.4 million TEUs, targeting major global trade routes.
🏗️ Hub-and-Spoke Network: The Gemini network will revolve around 12 key terminal hubs controlled by Maersk or Hapag-Lloyd, strategically located across Asia, the Middle East, the Mediterranean, North Europe, and the Americas. This structure aims to achieve over 90% schedule reliability, a significant improvement over recent industry standards.
⚓ Capacity and Fleet Distribution: Within the Gemini partnership, Maersk will contribute 60% of the capacity, while Hapag-Lloyd will provide 40%. However, both companies will maintain operations outside the Gemini network with vessels not allocated to this partnership.
⏱️ Improved Reliability: The partnership aims to boost on-time reliability through streamlined port calls, controlled hub operations, and dedicated shuttle services. These factors are expected to reduce delays and improve service reliability, allowing for more consistent and timely deliveries.
🗓️ Schedule Release: Preliminary ocean schedules for the Gemini network will be released in Q3 2024, with full operating schedules available by Q4 2024. The new network will be fully operational by February 2025, following the end of the 2M Alliance agreement.
🤝 Complementary Strategies: Despite differing business strategies—Maersk with an end-to-end logistics focus and Hapag-Lloyd as a pure ocean carrier—both companies share common goals in quality and sustainability, which are central to the new partnership.
🌍 Impact on Global Shipping Alliances: Hapag-Lloyd’s departure from THE Alliance will withdraw 25% of its capacity, forcing the remaining members (ONE, Yang Ming, HMM) to reorient their strategy. This shift may pressure these carriers to seek new partnerships or innovate their service offerings to remain competitive.
🛠️ Long-Term Cooperation: The Gemini partnership is set for an initial three-year term, with a 12-month notice required for any withdrawal. Both companies express optimism about the potential for this cooperation to continue long-term, citing successful examples from other industries, like aviation.
🌐 Broader Industry Implications: The move signals a broader trend of reorientation within global shipping alliances, as carriers seek more robust and resilient networks to handle increasing market demands and external disruptions, particularly in the wake of recent global supply chain challenges.

Full article: https://www.joc.com/article/maersk-hapag-lloyd-launch-new-gemini-cooperation-partnership-5225857