FILE PHOTO: Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk as it sails in the Strait of Gibraltar towards the port of Algeciras, Spain January 19, 2023. REUTERS/Jon Nazca/File Photo
The Gemini Cooperation Agreement between shipping giants Maersk and Hapag-Lloyd took effect on Monday, signaling a major shift in the global maritime industry.
The Gemini Cooperation, set to officially launch in February 2025, will create a vast network of nearly 300 vessels with a capacity exceeding 3 million TEU, aiming for over 90% schedule reliability.
Filed with the Federal Maritime Commission (FMC) on May 31, 2024, the agreement allows the companies to share vessels on routes connecting the United States with Asia, the Middle East, and Europe. It will encompass seven major trade routes and 26 mainline services, utilizing a “hub and spoke” model.
Despite the agreement taking effect, FMC Chairman Daniel B. Maffei expressed concerns about potential anti-competitive consequences. “I have questions and concerns about whether the Gemini Cooperation Agreement filed with the FMC has, or will, result in anti-competitive consequences that violate the Shipping Act,” Maffei stated.
Maffei noted that current law does not provide the Commission with additional time to evaluate the agreement or prevent it from taking effect. However, he emphasized that the FMC will engage in “immediate and ongoing rigorous monitoring” to ensure the agreement doesn’t illegally impact U.S. importers, exporters, service providers, and consumers.
The FMC retains the authority to assess the competitive effects of the agreement and seek an injunction in federal court if it determines the agreement is likely to cause unreasonable increases in transportation costs or decreases in service. While no such determination has been made, the Commission will subject the Gemini Cooperation Agreement to extensive monitoring starting immediately.
As part of their participation in the Gemini Cooperation, Hapag-Lloyd will exit THE Alliance at the end of January 2025, coinciding with the termination of the 2M Alliance by Maersk and MSC Mediterranean Shipping Company.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 109,795 members that receive our newsletter.
Have a news tip? Let us know.
President-elect Donald Trump has reignited the debate over the Jones Act, sharing a pro-Jones Act article that underscores the century-old law’s significance to America’s maritime industry and national security. The...
The California State Lands Commission has partnered with the ports of Long Beach and Humboldt in a groundbreaking agreement to accelerate floating offshore wind energy development along the California coast....
The International Chamber of Shipping (ICS), representing over 80% of the world’s merchant fleet, has unanimously appointed Thomas A. Kazakos as its next Secretary General. Kazakos, who brings extensive maritime...
Maritime and offshore news trusted by our 109,795 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
