From 1st of Feb 2025, 2 shipping giants Maersk and Hapag Lloyd join hands for a new alliance “GEMINI COOPERATION” connecting East to West with capacity ratio of Maersk : Hapag to be 60% : 40%.
Breaking earlier alliance by both the lines
Maersk and MSC are mutually ending the 2M alliance from JAN 2025. This is creating a major shift and impacting whole maritime industry. MSC will be operating independently from Feb.
Hapag is moving out of “THE ALLIANCE “– it was a joint alliance of Hapag, ONE, HMM and YML.
How it changes Maersk stance.
Earlier Maersk has been reluctant to have alliances with other shipping line but changes can be seen now.
Short term impact
Ocean Freight increase globally which can already be seen since JAN.
Space issue due to this disbalance.
It can be tough for Hapag to fill 40% capacity which can create a disbalance in short term.
Long term impact
Since one complete cycle will take 13 weeks thus this route would need more vessels to fill the gaps to have regular weekly calls. This might lead to shifting the vessel from other routings.
Same will be the scenario for MSC thus – this might lead to an imbalance.
The cooperation between Maersk and Hapag can also be seen in many other projects. In future we can also see the news of merger of these two lines.
Gemini Cooperation will adopt Hub and Spoke model expected to be touching only the major 3 ports in long run as shown the diagram. While presently the route is connecting to 7 to 10 ports connecting with Maersk service of AE10, AE9, and AE5. The present route is planned through Cape of Good Hope and will shift to Suez canal depending on safety of vessels which expected from August 2025.
Benefits off shipping line alliance
Increase in operational efficiency - Sharing of resources.
Reduce logistics cost.
Increase in service reliability in terms of transit time.
Being competitive to other lines.
Please click on below link to read further about the topic.
Popular Posts
Explore Topics
Comments
