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South Korea’s Busan (pictured) and Vung Tau in southern Vietnam are the main beneficiaries in the new Gemini schedules, having won back hub status after being relegated to largely feeder ports in the initial network plan.
Asian ports have emerged as key beneficiaries in the Gemini Cooperation’s updated service network, which was released on Tuesday and reinstates direct calls on multiple services. This new network offers shippers alternative routes via the Cape of Good Hope and the Suez Canal.
The announcement followed a day after the US Federal Maritime Commission confirmed the activation of the Maersk/Hapag-Lloyd partnership agreement, which had undergone a lengthy review.
Additionally, the updated Gemini network was revealed a day after the new Premier Alliance—comprising carriers from the soon-to-be dissolved THE Alliance and Mediterranean Shipping Co. as a slot charter partner—unveiled its service schedule for February 2025. This schedule also includes routes through the Suez Canal and southern Africa but emphasizes direct port-to-port connections rather than Gemini’s hub-and-spoke model.
Gemini stated that it will decide next month whether to utilize the Cape of Good Hope or Suez Canal for the alliance’s formal launch in February. The alternative route around southern Africa was introduced in response to ongoing disruptions in the Red Sea.
The Suez Canal network will offer 27 mainline and 30 shuttle services with a total of 300 ships and a capacity of 3.4 million TEUs across seven east-west trade routes, including Asia-US, Asia-North Europe, Asia-Mediterranean, Asia-Middle East, Middle East-India, Europe, and the trans-Atlantic.
In contrast, the Cape of Good Hope network also covers these seven trades but employs 341 ships with a total capacity of 3.7 million TEUs, providing 29 mainline and 30 shuttle services.
According to Lars Jensen, CEO of Vespucci Maritime and an analyst at the Journal of Commerce, the additional vessels on the southern Africa route indicate a response to the capacity needs arising from the Red Sea crisis. He noted that the Suez network features eight Asia-Europe services, while the Cape of Good Hope has only seven, and that the Suez route offers ten Pacific services, one more than its Cape counterpart.
Hapag-Lloyd CEO Rolf Habben Jansen confirmed in August that adjustments were being made to the Gemini service network for operational reasons.
Busan, Vung Tau regain hub status
South Korea’s Busan and Vung Tau in southern Vietnam are the primary beneficiaries of the new schedules, regaining their hub status after being relegated to mostly feeder ports when Gemini released its initial network last January.
Busan is now included in the revised schedules for six trans-Pacific services on both the Suez Canal and Cape of Good Hope routes. Vung Tau has been added to three mainline trans-Pacific services via the Suez Canal and two via the Cape of Good Hope.
However, even with the new Gemini network, Busan will lose all its current mainline calls from Maersk and Hapag-Lloyd for Asia-Europe and Asia-Mediterranean services, relying instead on feeder services to Shanghai and Tanjung Pelepas via Qingdao.
Another notable change is the complete removal of Hong Kong from the Gemini network, which had already been downgraded to a feeder port in the January schedule. Consequently, shippers will need to transport cargo independently to connect with Gemini services at Yantian.
Hutchison Port Holdings has already anticipated a decline in cargo at Hong Kong’s Kwai Chung terminals, as some of the throughput currently handled there by Maersk and Hapag-Lloyd will shift to Yantian once the Gemini partnership is operational.
“The clear winner from the newly announced networks appears to be the shippers,” Jensen mentioned in a LinkedIn post. “The networks are quite distinct in their design, providing a more diverse range of options.”
However, Peter Sand, chief analyst at Xeneta, noted that carriers are likely prioritizing operational efficiency. “While we hope this enhances service offerings for customers, we recognize that carriers are focusing on optimizing their networks for fleet efficiency above all else,” Sand told the Journal of Commerce on Tuesday.
He added, “As I’ve mentioned before, each carrier must concentrate on its strengths, as they can’t meet every shipper’s needs entirely. Even MSC needs partners.”
“Reliability, connectivity, and sustainability are the key themes in the networks we are introducing today. We are pleased to offer our customers complete transparency about how we will deliver a top-tier ocean network, enabling them to plan effectively in a highly dynamic environment,” said Habben Jansen in a statement about the updated network on Tuesday.
He also noted that Hapag-Lloyd and Maersk would begin selling space on the Gemini network this month, with bookings starting in December ahead of the network’s February launch.
Habben Jansen estimated that transitioning vessels from the Gemini carriers’ current commitments with THE Alliance and 2M Alliance would take about three months.
Maersk CEO Vincent Clerc confirmed that the reliability target for Gemini’s schedule remains at 90%, regardless of which network is phased in starting in February.
Source: https://www.cello-square.com/en/marketupdates/view-1696.do?utm_source=linkedin_go&utm_medium=owned&utm_campaign=joc&utm_content=content-410
