It is a new addition to the maritime transport landscape. And not least. And for good reason, it concerns Danish shipowner Maersk and German Hapag-Lloyd, which are ranked second and fifth in the world, respectively. Their long-term strategic alliance, “Gemini Cooperation”, was unveiled this Wednesday. There is demonstrable ambition “Providing flexible and interconnected ocean networks with industry-leading reliability”. This cooperation will be effective from February 2025 only. It will then sound the death knell for the 2M alliance between Maersk and the world’s number one, Swiss shipowner MSC.
In detail, she “will comprise a fleet of approximately 290 vessels with a combined capacity of 3.4 million containers (TEU)”, Maersk said in a statement with 26 services on main routes.
Credibility as a strategic axis
“We will offer our customers a flexible maritime network that will improve the reliability of the sector. This will strengthen our integrated logistics offering and meet the needs of our customers.” Maersk CEO Vincent Clarke was quoted as saying in the press release.
If it emphasizes this notion of reliability, it is because it is an integral part of its model, along with service quality, which is implied. Gallery Maria Lee, a logistics expert at consulting firm Sia Partners, even though this involves significant administrative rigor.
A model that is even closer to Hapg-Lloyd. J Maria Lee says that the two new partners are undoubtedly finding each other well. She believes this partnership makes sense in terms of offering and geographic location as well. Finally, it highlights a specific alignment with environmental objectives, with Maersk committed to achieving net zero greenhouse gas emissions by 2040 and Hepag-Lloyd by 2045.
Considerable resources from two ship owners
Of the approximately 290 vessels of various sizes joining the Gemini Cooperation fleet, Maersk will represent 60% of the capacity provided. This amounts to just over 2 million TEU containers. The Danish shipowner will therefore invest heavily in the project, dedicating half of its overall resources to it, which has a fleet of around 700 vessels (owned or chartered) for a total capacity of over 4 million TEUs.
The investment of resources is also significant for Hapg-Lloyd. It has to supply 1.4 million TEU containers out of a total claimed transportation capacity of 2.9 million TEU containers. That is to say that even here is half of the current resources of a German ship owner. According to the exclusive Alphaliner database, Hapag-Lloyd’s actual capacity is however less than displayed with a container capacity of only 1.9 million TEU for 269 vessels.
In any case, if Gemini Cooperation manages to mobilize this announced capacity of 3.4 million containers, it will represent the equivalent of the world’s fourth largest ship owner. Thus it is the owner of CMA CGM ( Gallery) (3.6 million TEU according to Alphaliner) and COSCO (3.1 million TEU).
Its future network will consist of 58 lines, including 26 main lines, with more than 6,000 possible combinations between different ports. It will thus be located on major sea routes: Asia to Europe, North America and Middle East, as well as Europe to/North America, Middle East and India.
Alliances that do not lack wealth
As a result of this new agreement, the 2M alliance will end in January 2025 after 10 years. This was certainly the initially planned period for the agreement, but Maersk and MSC indicated their desire not to extend their partnership in January 2023. That left the door open for new strategies.
Unlike what is happening with Hapg-Lloyd, Maersk’s philosophy is not necessarily aligned with its future former partner, launched for its part in the MSC capacity competition. From 3.6 million TEU containers in 2019, the ship owner now handles 2 million more TEU. It thus became the world’s number one, displacing Maersk. has been reported by Financial Times In an article a few months ago highlighting the strategic differences between Maersk and MSC, the Danish shipowner’s general director, Vincent Clark, asserted during an interview that his group “Need to regain control”.
As reported by Maria Lee of Sia Partners, the group has also shown its desire to diversify with the development of a multimodal approach towards the implementation of transport, road and air, or other means of warehousing solutions. It aims to generate half of its turnover outside the maritime sector within 10 years.
The divorce between MSC and Maersk will be closely scrutinized, particularly over the distribution of customers that the two shipowners shared until then. Maersk promises on its website “(its) customers as smoothly and simply planned as possible (…) a smooth transition to the new network”.
Hapg-Lloyd will also leave “The Alliance” in January 2025. As a reminder, the latter was formed in 2016 with Asian ship owners.
With this contrast, another alliance known as the “Ocean Alliance” should take first place in the world. Created in 2017 for a period of ten years, it brings together CMA CGM, COSCO Shipping, OOCL and Evergreen.
If shipowners enter into such partnerships with each other, it is because this cooperation presents many advantages. they “allow companies to offer better competitiveness and better service while leaving them with freedom of action”, Transport agent, Qualitaire & C, explains on its website. According to him, sea connections have contributed significantly in reducing operating costs. In fact, they have enabled the use of shared resources, and therefore, economies of scale, to optimize space on board ships or to offer a more complete global shipping network.
Sea transport in trouble
The announcement comes at a time when international maritime trade is struggling as early as 2024. And this, in particular, due to tensions in the Red Sea – near the Suez Canal – where 12% of sea traffic is transported. Global. Since last November, Yemeni rebels, the Houthis, have launched nearly twenty attacks there against merchant ships they suspect of being linked to Israel. The attacks were carried out in solidarity with Palestinians facing the war between Israel and Hamas in the Gaza Strip.
In response, the United States and the United Kingdom targeted more than 30 military sites captured by the militia last weekend. It responded earlier in the week by firing a missile at an American cargo ship, causing no injuries or major damage. This Tuesday, a Greek bulk carrier was hit by a rebel missile.
Following the recurrence of these attacks, merchant ships are recommended to stop their AIS (Automatic Identification System) signals. As a reminder, it allows their location in real time, or failing that, to transmit the minimum possible information. But to avoid these waters by diverting transit through the Cape of Good Hope at the southern end of the African continent to connect Europe with Asia. However, this decision significantly lengthens the journey, and therefore delivery time, and increases sea freight rates.
It is clear that this is a decision made by several major shipping and oil companies, including Maersk and Hapag-Lloyd. The American think tank Sophan Center identified on 10 January “At least 18 major shipping carriers have chosen to avoid the Red Sea.” And since then, such announcements have multiplied, making the figure even higher.
Among them, Dan Torme from last week. This Tuesday, it was British oil giant Shell that made it known. And this Wednesday, three major Japanese shipping carriers, Nippon Yusen, Mitsui OSK Lines and Kawasaki Kisen.
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