Firms Maersk and Hapag-Lloyd have entered into a collaborative agreement aimed at establishing a novel alliance among long-distance container freight operators. This newly formed coalition is to be recognized as the Gemini Cooperation.
Maersk, a Danish company, holds the position as the second-largest global entity in the industry, boasting a market share of approximately 15.8% in the realm of container shipping. Conversely, Hapag-Lloyd, a German entity, secures the fifth position, overseeing around 6.8% of the transportation within this sector.
The alliance is set to operate a fleet of 290 cargo ships, with 60% provided by the Danish company and the remaining 40% by its German counterpart. Collectively, these vessels are anticipated to boast a total capacity of 3.4 million TEUs, which refers to standardized twenty-foot equivalent units.
Both companies assert that this collaborative effort will enable them to curtail costs and enhance transit times to ports along the designated routes. Such objectives are particularly significant in light of recent non-economic incidents on global waters, leading to substantial delays and escalated costs in the shipping sector.
The establishment of the Gemini Cooperation alliance signifies the intention of both companies to dissolve their existing agreements, under which they have been conducting their operations.
In pursuit of this goal, Hapag-Lloyd will withdraw from THE Alliance, an agreement that encompasses a consortium of Asian operators from Japan, Korea, and Taiwan.
These operators collectively rank among the top ten largest players in the industry, constituting approximately 18.4% of the market. Presently, Maersk participates in the "2M" alliance alongside the Swiss-Italian MSC (Mediterranean Shipping Company), presently holding the distinction as the largest single operator in the global freight industry, commanding an 18.2% market share.
The projected commencement date for the operations of Gemini Cooperation is earmarked for the beginning of 2025. The current year is earmarked for the purposeful reorganization of both companies, ensuring an efficient transition to the new operational conditions. How will this affect the international transport market? You'll have to figure that out for yourself ;). The money is on the floor, all you need is information and easy analysis!
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