Gemini Carrier Alliance Stopped In Its Tracks By FMC

The new alliance between Maersk and Hapag Lloyd, which is planned for 2025, was put on hold last week by the US Federal Maritime Commission (FMC), who require more information before approving it for trading with the US.

The Gemini Cooperation, as it is named, is an upcoming vessel sharing alliance between the two carriers who are the 2nd and 5th biggest carriers in the world. Together, they will be offering a capacity of 6 million TEU’s, which will be the biggest network after the shake up in carrier alliances next year.

The agreement was due to officially start from this week, before the FMC made their ruling, although operations are not due to commence until February 2025. The FMC have said “The commission has determined that the Gemini Cooperation agreement as submitted lacks sufficient detail to allow for a complete analysis of its potential competitive impacts”.

They have not ruled out sanctioning Gemini at a later date, but require more information, adding: “Re-consideration of the agreement will not commence until the commission has received a fully compliant response to its enquiry.”

Maersk confirmed last year that their 10-year agreement with MSC in the 2M alliance was coming to an end next year. Both 2M carriers were expected to be planning to operate independently in their own networks.

However, the Gemini Cooperation announcement came as a shock to most of the shipping industry later last year, especially with Hapag Lloyd being an established member of THEA (THE Alliance).

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