Maersk and Hapag-Lloyd confirm ‘Cape’ Route for Gemini Cooperation launch

COPENHAGEN : Shipping giants Maersk and Hapag-Lloyd have announced their decision to utilize the Cape of Good Hope network for the launch of their “Gemini Cooperation” on February 1, 2025, underscoring the persistent threat to ships and crews in the Red Sea.

This decision is the latest indication that the Red Sea crisis shows no signs of abating, nearly a year after the Iranian-backed Houthis began their campaign against shipping in solidarity with Palestinians in the Israel-Hamas war in Gaza.

In early September, Maersk and Hapag-Lloyd outlined two potential scenarios for Gemini’s operations upon launch, contingent on the Red Sea situation: either resuming the Red Sea route or continuing to use the alternative Cape of Good Hope route.

In a joint statement, the companies have now declared, “After thorough consideration, and given the continued safety concerns in the Red Sea, Hapag-Lloyd AG and Maersk A/S confirm that they expect to phase in their Cape of Good Hope network for the commencement of the Gemini Cooperation on 1 February 2025.”

“As the situation remains highly dynamic, Hapag-Lloyd and Maersk will return to the Red Sea when it is safe to do so,” the statement added.

The Cape of Good Hope network will comprise 29 mainliner services supported by 28 intraregional shuttle services. It will operate with a fleet of approximately 340 vessels, boasting a total capacity of 3.7 million TEU.

The collaboration aims to achieve industry-leading schedule reliability of over 90 percent once fully implemented, ensuring efficient and flexible services across East-West trade routes. It plans to accomplish this using a “hub and spoke” model, centered around strategic “hub” ports—many owned or managed by Hapag-Lloyd/HGT or APM Terminals—and feeder shuttle services connecting these hubs to “spoke” ports.

The decision to opt for the longer Cape of Good Hope route underscores the priority placed on safety. “The decision to implement the Cape of Good Hope network has been taken after thorough consideration and is driven by ongoing safety concerns in the Red Sea region. Given the current geopolitical situation and the need to ensure the safety of our people, we determined that this route is the only viable option at this stage,” the companies said in a statement.

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.