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Gemini set to sail as Hapag-Lloyd takes bookings from 3 DecGemini set to sail as Hapag-Lloyd takes bookings from 3 Dec

Hapag-Lloyd is to open bookings on 3 December for its services on the Gemini Cooperation with Maersk ahead of the alliance’s official start in February 2025.

Nick Savvides, Europe correspondent

November 28, 2024

3 Min Read
Container being loaded onto a Hapag-Lloyd vessel
Credit: Hapag-Lloyd

The announcement comes as the lines have seen their revenues boosted particularly on the Pacific, which has seen an increase in volumes over the first nine months of the year, while the absorption of new vessels due to the Red Sea diversions has meant capacity has remained tight.

“Carriers with a strong foothold on the Transpacific have higher operating margins. The Red Sea crisis has led to a shortage of tonnage (no idle fleet) and transpacific operators are benefitting from higher rates without having to face extra operational costs for deviations via the Cape (which operators have to pay between Asia and Europe),” explained Stefan Verberckmoes, senior shipping analyst at Alphaliner.

Both Gemini carriers both posted average rate increases in the third quarter, reported Alphaliner, Maersk by 54.4%, raising its average rate to $1,618 per teu, while Hapag-Lloyd saw rates rise to $1,612 per teu, a 22.9% increase. However, Maersk’s volumes increased 0.3% to over 6.3 million teu, while Hapag saw a bigger percentage increase, 3.8%, to 3.22 million teu.

With the German and Danish carriers launching the Gemini Cooperation in February 2025 with an innovative hub and spoke system, which the lines say will allow them to raise their schedule reliability to over 90%, while offering value added services at points in supply chains.

One such hub will be at DP World’s London Gateway port, with the Hutchison Ports owned Felixstowe losing volume to its competitor on the Thames estuary.

One logistics source said Gemini’s switch to London Gateway “blindsided” the Hong Kong port operator, but it is thought change was driven by major shippers and their warehousing requirements, along with the higher capacity double track rail connection into London Gateway, where Felixstowe relies on a nineteenth century single track rail link to the UK network.

A Maersk statement, however, read: “During our review of the Asia – Europe services, we have concluded that London Gateway is the most optimal port to serve our customers importing/exporting cargo to/from UK.

“This strategic decision should be seen in the light of our ambition to reduce network complexity with fewer port calls per service, and is aimed at enhancing reliability, reach, and speed for our customers. Due to this change, Felixstowe will not be a part of Maersk and Hapag-Lloyd’s shared Gemini network.”

The shift to a hub and spoke system will rely heavily on the carriers’ ability to achieve the 90% reliability goal, with the lines targeting high end cargo.

Their more traditional, direct call, port-to-port competitors will have lower costs on the major trade routes, with both Cosco and MSC offering less complex solutions.

Asked about Gemini’s chances of success, Dynamar analyst Darron Wadey said: “It is difficult to predict but we are seeing a difference in operational doctrines being put forward.”

Maersk will offer port operations, landside transport, depots, and logistics services.

Wadey added that the other alliances, “will still be operating networks that require substantial support from transhipment hubs – they will be offering more direct services which, by implication, may have to involve smaller ships (and bear in mind that nowadays a 10% smaller ship can be a difference of 2,400 teu.”

According to Wadey the Gemini concept may look achievable on paper, especially at a container unit cost and yield level, but he warns it must be tested, particularly in combination with the 90% reliability aim.

“Will it work?” He asks, “To paraphrase Mike Tyson, ‘everybody’s got a plan until they get hit’; in other words, how will the Gemini network proposition and promise react to disruptive stress? We will find out next year.”

About the Author

Nick Savvides

Europe correspondent

Experienced journalist working online, in monthly magazines and daily news coverage. Nick Savvides began his journalistic career working as a freelance from his flat in central London, and has since worked in Athens, while also writing for some major publications including The Observer, The European, Daily Express and Thomson Reuters. 

Most recently Nick joined The Loadstar as the publication’s news editor to develop the profile of the publication, increase its readership and to build a team that will market, sell and report on supply chain issues and container shipping news. 

This was a similar brief to his time at ci-online, the online publication for Containerisation International and Container News. During his time at ci-online Nich developed a team of freelancers and full-time employees increasing its readership substantially. He then moved to International Freighting Weekly, a sister publication, IFW also focused on container shipping, rail and trucking and ports. Both publications were published by Informa. 

Following his spell at Informa Nick joined Reed’s chemical reporting team, ICIS, as the chemical tanker reporter. While at ICIS he also reported on the chemical industry and spent some time on the oil & gas desk. 

Nick has also worked for a time at Lloyd’s Register, which has an energy division, and his role was writing their technical magazine, before again becoming a journalist at The Naval Architect for the Royal Institution of Naval Architects. After eight successful years at RINA, he joined Fairplay, which published a fortnightly magazine and daily news on the website.

Nick's time at Fairplay saw him win the Seahorse Club Journalist of the Year and Feature Writer of the Year 2018 awards.

After Fairplay closed, Nick joined an online US start-up called FreightWaves. 

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