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Logistics
Sea Freight

FMC halts Maersk/Hapag-Lloyd Gemini Cooperation

15 Jul 2024 - by Staff reporter
 Source: inforMARE
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The Federal Maritime Commission (FMC) has stalled a planned global operational alliance between two of the world’s largest container shipping companies, Maersk A/S and Hapag-Lloyd AG, including Hapag-Lloyd USA, LLC.

The agreement, which was scheduled to come into effect on Monday, July 15, will not go ahead because the FMC has issued a request for additional information (RFAI) to determine the potential competitive impact of the arrangement.

Maersk A/S, Hapag-Lloyd AG and Hapag-Lloyd USA, LLC, filed the Gemini Cooperation Agreement (No. 201429) with the commission on May 31, the FMC said in a statement. The agreement planned to establish one of the world’s most significant operational container shipping alliances.

The agreement would allow the shipping lines to share vessels in the trades between the United States and Asia, the Middle East, and Europe.  Agreements become effective 45 days after filing unless the commission issues an RFAI.

The commission said it uses the RFAI process to identify and achieve clarity on matters not addressed by the filing parties, or where insufficient information was provided in the originally-filed agreement. Information sought as part of an RFAI is commercially sensitive and not released to the public.

“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,” the FMC said.

“Reconsideration of the agreement will not commence until the commission has received a fully compliant response to its inquiry. The commission has 45 days from when it determines responses to the RFAI are deemed complete, to review the agreement for competitive and legal concerns before it becomes effective,” the FMC said.

A 15-day public comment period will open once public notice of the RFAI is published in the Federal Register next week.

The Gemini Cooperation Agreement would have come into effect on July 15 if the commission had not issued the RFAI.

The 2M alliance, composed of Maersk and MSC, control some 34% of the alliance market, followed by Ocean Alliance which has a 29.1% share. If the Gemini Cooperation had gone ahead as planned it would have accounted for a 21.6% share of the market.

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