A.P. Moeller-Maersk and Hapag-Lloyd Join Forces to Address Industry Challenges

In response to the challenges facing the shipping industry, Danish shipping giant A.P. Moeller-Maersk and Germany's Hapag-Lloyd have announced a new vessel-sharing agreement set to commence next year. The collaboration, named Gemini Cooperation, aims to enhance efficiency and support the companies' efforts towards decarbonization.

The shipping industry experienced a surge in demand during the pandemic, causing a shortage of ships to transport cargo. However, as the pandemic wanes, the industry now faces an excess of vessels, resulting in significantly lower freight rates. Additionally, recent conflicts in the Middle East have forced shippers to redirect their vessels over long distances.

To tackle these challenges, the companies plan to leverage a fleet pool consisting of approximately 290 vessels with a combined capacity of 3.4 million containers. Maersk will contribute 60% of the ships, while Hapag-Lloyd will provide 40%. Maersk currently operates a fleet of around 740 vessels, while Hapag-Lloyd has 264.

As part of this agreement, Hapag-Lloyd will exit THE Alliance, which it currently participates in with Korea's HMM, Singapore's Ocean Network Express, and Taiwan's Yang Ming, by the end of January 2025. Similarly, Maersk announced the conclusion of its 2M alliance with Mediterranean Shipping Company in January 2025.

By joining forces through the Gemini Cooperation, A.P. Moeller-Maersk and Hapag-Lloyd aim to create a flexible and interconnected ocean network, contributing to the industry's overall decarbonization efforts.