By Mr. Gautham Krishnan
The start of 2023 saw the 2M alliance between A.P. Moller – Maersk and MSC Mediterranean Shipping Company announcing separation with effect from Jan1, 2025. The move was touted to be a focal point for Maersk to go solo and explore its roles of being a full-fledged supply chain integrator.
And just a while back, A.P. Moller – Maersk have announced the inking of a strategic alliance with Hapag-Lloyd AG under the banner of Gemini Corporation which would come into effect from February 1st, 2025. (akin to the famous Gemini constellation depicting the twins).
This would mean high possibility of Hapag-Lloyd detaching from the #Alliance (the service co-partnered by HMM, Ocean Network Express and Yang Ming Marine Transport Corp.) before incorporation of the new service agreement and would cut down the sheer scale of this shipping service.
Gemini will see about 290 vessels between Hapag-Lloyd and Maersk with a combined capacity of 3.4 million containers (TEU); where Maersk will deploy 60% and Hapag-Lloyd the remaining 40%.
The service is expected to cover 7 trades: Asia / US West Coast, Asia / US East Coast, Asia / Middle East, Asia / Mediterranean, Asia / North Europe, Middle East – India / Europe and Transatlantic and would make it one of the largest services.
The move comes amidst some of the highest degrees of volatility in spot market rates with all the supply chain disruptions and this further shifts more power to the carrier end of the ocean supply chain.
On another note the strategic outcomes of this will have to be seen given that Maersk and Hapag Lloyd have batted for stiffer decarbonization targets.
Mr. Gautham Krishnan
Gautham Krishnan is a logistics professional with Fluor Corporation, who has expertise in the Supply Chain area focusing in the Project Logistics domain, analytics and the LogTech space. He has worked in the areas of Project Management, Business Development and Government Consulting. For his body of work in the mentioned areas, he was bestowed the AntwerpXL 40-under-40 award in the year 2023, and touted to be one of the upcoming, future leaders in the project logistics & supply chain function.