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The Gemini Cooperation Agreement, an operational cooperation between Maersk and Hapag-Lloyd, took effect September 9
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The long-term cooperation allows both companies to share vessels on routes between the United States, Asia, the Middle East, and Europe
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The Federal Maritime Commission has reviewed the agreement to assess its potential competitive impacts and its compliance with statutory requirements
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The US maritime agency stated that the agreement will be subject to “extensive Commission monitoring” commencing immediately
The Gemini Cooperation Agreement, an operational cooperation between Maersk and Hapag-Lloyd, took effect September 9, according to the US Federal Maritime Commission (FMC).
The Gemini agreement was originally filed with the FMC on May 31 by Maersk A/S and Hapag-Lloyd AG and Hapag-Lloyd USA.
The long-term cooperation allows the companies to share vessels on routes between the United States, Asia, the Middle East, and Europe.
In a statement, the FMC has reviewed the agreement to assess its potential competitive impacts and its compliance with other statutory requirements and prohibitions.
“Existing law (46 U.S.C. 41307) empowers the Commission to assess the competitive effects of a filed agreement to determine if it is likely, by a reduction in competition, to cause an unreasonable increase in transportation costs or a decrease in transportation service,” the FMC said.
The US maritime agency also said that the Gemini Cooperation Agreement will be subject to “extensive Commission monitoring,” commencing immediately.
“Carrier alliance agreements are subject to enhanced examination and continuous oversight,” the FMC stated.
The US maritime agency issued a Request for Additional Information (RFAI) on July 12, which required the companies to provide the data necessary for completing an economic analysis of the agreement’s competitive effects.
Maersk and Hapag-Lloyd submitted their responses to the RFAI on July 26.
By law, the Commission has a maximum of 45 days to review a newly filed agreement or the responses to an RFAI before the agreement automatically goes into effect.
In addition, the FMC administers other authorities, including existing administrative investigatory authorities that can be used to assess the conduct and consequences of carrier alliance agreements when reviewing the competitive effects of cooperative agreements filed at the agency.
Meanwhile, the two companies on September 10 announced the launch of the Gemini Cooperation on February 2025 in a joint press release.
Since the two companies unveiled the new long-term collaboration in January 2024, they have been working on finalizing the details of the operational collaboration which covers a joint ocean freight network on East-West trades.
The companies are also presenting an alternative Cape of Good Hope network due to the on-going disruptions in the Red Sea.
In October, the Gemini Cooperation will announce which network it expects to put to sea in February 2025.
Depending on which network the cooperation will phase in, the new network consists of either 27 or 29 efficient ocean mainliner services supported by an extensive network of 30 agile, intraregional shuttle services. The collaboration will comprise of either 300 or 340 vessels.
