The container shipping industry is undergoing significant changes as Maersk and its vessel-sharing partner, Hapag-Lloyd, launched their Gemini Cooperation on February 1.
According to various operational collaborations, the new alliance, which replaces the 2M arrangement Maersk had with MSC, aims to provide a flexible and interconnected ocean network, striving for industry-leading schedule reliability exceeding 90% once fully operational.
The Gemini Cooperation network would comprise approximately 290 initially deployed vessels with a combined capacity of 3.4 million 20-foot-equilvalent unit (TEU) containers.
The collaboration’s ocean network will encompass East-West trades, comprising 29 mainliner services supported by 28 intraregional shuttle services for extensive coverage and connectivity.
When fully operational, Gemini will consist of 57 services across the globe and boast 3.7m TEU in capacity, which will see it dominate some trades.
The transition period following the dissolution of 2M is expected to conclude by mid-May.
June is expected to be the inaugural month where the network operates at full capacity with all expected 340 integrated vessels following the Gemini schedules.
The alliance will utilise a ‘hub and spoke’ strategy, relying on key ports (hubs) with fewer port calls on mainline services and high-capacity shuttle services to link those hubs to smaller ‘spoke’ ports.
Maersk Ocean chief product officer, Johan Sigsgaard, said the company had carefully planned the transition to ensure customers experienced a smooth transition into the new network and benefit from increased reliability, flexibility, and more competitive products.
Hapag-Lloyd chief executive, Rolf Habben Jansen, said the hub and spoke model could also cut emissions, as larger vessels could operate on the mainline routes, with speeds optimised and idling times reduced.
He added that the goal was to achieve industry-leading reliability of over 90% to meet customers’ needs for dependability and raise the quality standard across the industry.
Apart from Gemini replacing 2M, Hapag-Lloyd will leave THE Alliance.
According to US maritime publication, gCaptain, with Hapag-Lloyd’s departure from THE Alliance, Ocean Network Express (ONE), HMM, and Yang Ming Marine Transportation will establish the ‘Premier Alliance’.
Due to security concerns in the Red Sea, the Gemini network will route vessels via the Cape of Good Hope.
