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Maersk and Hapag-Lloyd’s new Gemini Cooperation agreement will provide Philippine shippers improved reliability, speed and global reach, according to Maersk Logistics and Services Philippines Inc. Country Manager Melissa San Gabriel
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For launch in February 2025, Gemini Cooperation allows Maersk and Hapag-Lloyd to share vessels on the East West trades, for example, between Asia and the United States, Asia and the Middle East, and Asia and Europe, etc.
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The operational agreement is expected to deliver a flexible and interconnected ocean network with industry leading reliability once fully phased in
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More shuttles and leaner loops with fewer port calls to limit disruptions will be introduced, said San Gabriel
Maersk and Hapag-Lloyd’s new Gemini Cooperation agreement will provide Philippine shippers improved reliability, speed and global reach, according to Maersk Logistics and Services Philippines Inc. Country Manager Melissa San Gabriel.
First unveiled in January 2024 and for launching in February 2025, the collaboration allows Maersk and Hapag-Lloyd to share vessels – from 300 to 340 – in the East West trades, for example, between Asia and the United States, Asia and the Middle East, and Asia and Europe.
The aim is to deliver a reliable, agile and interconnected ocean network with industry-leading schedule reliability once fully phased in. For locations covered by shuttles and mainlines, the aim is to deliver >90% reliability.
“We know the industry is facing huge challenges. Shipping reliability today is about 50%. We recognize that as an industry, we’re not delivering cargoes on time because of vessel delays and we [have to] do something about it,” San Gabriel said in a speech during the recent 2024 Supply Chain Conference by the Supply Chain Management Association of the Philippines.
“The network that we have as an industry has been very traditional. Now, we’re changing it and doing something different,” she added.
San Gabriel said the “network of the future” under the Gemini Cooperation is trying to address three pillars—reliability, speed, and further reach.
“The aim of this network of the future is actually to have a more agile, more predictable supply chain, making sure that we are able to support our customers,” she added.
San Gabriel said they are designing the network similar to a hub and spoke, wherein they will introduce more shuttles and have leaner loops with fewer port calls to limit disruptions. This also enable Maersk to further the sustainability agenda as the improved reliability and less vessels stuck in bottlenecks which allows them to sail at more economical speed.
In an interview with PortCalls at the sidelines of the event, San Gabriel said the target is to start accepting bookings for the cooperation by December.
She said they are at the “design process” and looking at “potentially connecting the Philippines to our major hubs (one of the major ones is Tanjung Pelepas, Malaysia) to access key shuttle and mainline services.” PTP is operated by the joint venture between MMC Corporation Berhad and APM Terminals, which is part of the A.P. Moller-Maersk Group.
San Gabriel said the use of PTP “means we have better control in the terminal,” adding that PTP has proven over the years its record productivity.
According to Maersk, Gemini Cooperation aims to reduce network complexity with mostly single operator loops and fewer port calls per service, and incorporate terminals with the highest level of productivity and operational efficiency.
There will be two networks under the Gemini Cooperation—the Trans-Suez Network and the Cape of Good Hope Network—with both options prepared due to ongoing disruptions in the Red Sea.
By October, an announcement will be made on which network will be put to sea in February 2025.
Depending on which network will be phased in, the new configuration consists of either 27 or 29 efficient ocean mainliner services supported by an extensive network of 30 intraregional shuttle services. – Roumina Pablo
