The Gemini Cooperation Agreement between shipping giants Maersk and Hapag-Lloyd began on Monday, marking a significant development in the global maritime industry.
Officially launching in February 2025, the Gemini Cooperation will create a network of nearly 300 vessels with a combined capacity exceeding 3 million TEU, aiming for over 90 % schedule reliability. The agreement, filed with the Federal Maritime Commission (FMC) on May 31, 2024, permits the companies to share vessels on routes connecting the U.S. with Asia, the Middle East, and Europe. It will cover seven major trade routes and 26 mainline services, using a “hub and spoke” model.
Source: wikipedia.org
FMC Chairman Daniel B. Maffei has expressed concerns about the potential anti-competitive effects of the agreement. He stated that current law does not allow the Commission additional time to review or prevent the agreement from taking effect but assured that the FMC will engage in “immediate and ongoing rigorous monitoring” to prevent any illegal impact on U.S. importers, exporters, service providers, and consumers.
The FMC has the authority to evaluate the competitive effects of the agreement and can seek an injunction in federal court if it finds that the agreement could lead to unreasonable transportation cost increases or service decreases. Although no such determination has been made yet, the Commission will closely monitor the Gemini Cooperation Agreement.
As part of this agreement, Hapag-Lloyd will exit THE Alliance at the end of January 2025, which will coincide with the termination of the 2M Alliance by Maersk and MSC Mediterranean Shipping Company.
