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January 17, 2024
Disruptions, geopolitical events, and demand changes continue to highlight the need for reliability as a cornerstone in supply chains. With those challenges in mind, Maersk and Hapag-Lloyd announced today the signing of an agreement for a new long-term operational collaboration called Gemini Cooperation, which will begin February 01, 2025.
Both Maersk and Hapag-Lloyd previously engaged in separate alliances. Hapag-Lloyd will leave THE Alliance at the end of January 2025, and in January 2023, Maersk and MSC announced that the 2M alliance will end in January 2025.
The combined fleet pool will comprise around 290 vessels with a combined capacity of 3.4 million containers (TEU). Maersk will deploy 60% of the vessels and Hapag-Lloyd 40%. Through the combined fleets, the companies aspire to offer unrivalled schedule reliability, a far-reaching global network with competitive transit times and a reduced carbon footprint.
“We are pleased to enter this cooperation with Hapag-Lloyd, which is the ideal ocean partner on our strategic journey,” said Vincent Clerc, chief executive officer of Maersk. “By entering this cooperation, we will be offering our customers a flexible ocean network that will be raising the bar for reliability in the industry. This will strengthen our integrated logistics offering and meet our customers’ needs.”
As part of the agreement, the network has set the ambitious target of delivering schedule reliability of above 90%, once the network is fully phased in. Improved service quality and improved transit times in many major port-to-port corridors as well as access to some of the world’s best connected ocean hubs are some of the main things customers can look forward to, the companies said.
“Teaming up with Maersk will help us to further boost the quality we deliver to our customers. Additionally, we will benefit from efficiency gains in our operations and joint efforts to further accelerate the decarbonization of our industry,” Rolf Habben Jansen, chief executive officer of Hapag-Lloyd.
The cooperation will cover seven trades: Asia / North Europe, Asia / Mediterranean, Middle East – India / Europe, Asia / Middle East, Asia / U.S. East Coast, Asia / U.S. West Coast and Transatlantic and comprise of 26 mainline services. The mainline ocean services will be complemented by a global network of dedicated shuttles centered around owned and controlled transhipment hubs. These shuttle services will be spread as: 14 shuttle services in Europe, four in the Middle East, 13 in Asia and one in the Gulf of Mexico.
The new network has the goal of making an unparalleled improvement to schedule reliability, while maintaining competitive transit times and frequency, offering customers quality service and delivery promises.
Supply chain management that works
There are several benefits from having this new set-up, according to the companies. It will boost the quality delivered customers, and fewer port calls per rotation will reduce the risk of disruptions and complexity to execute. The extended shuttle network is also focused on agility, which enables competitive transit time, fast response to both disruptions and market changes. By incorporating more ways to reach each port, the companies said they can increase flexibility, but also better protect from disruptions.
The new network will also help bolster integrator strategy, allowing customers the flexibility to choose other transportation modes, whether that’s inland, rail, barge, or air, in addition to the ocean transport options.
During 2024, however, Maersk and Hapag-Lloyd said they will carefully plan the transition from their current alliances to the new operational cooperation. Concurrently, service to customers will continue along existing agreements. From now until January 2025, Maersk said 2M will continue to be a highly reliable network on the East West trades.
Krissa Welshans grew up on a crop farm and cow-calf operation in Marlette, Michigan. Welshans earned a bachelor’s degree in animal science from Michigan State University and master’s degree in public policy from New England College. She and her husband Brock run a show cattle operation in Henrietta, Texas, where they reside with their son, Wynn.
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