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The US Federal Maritime Commission (FMC) put the Gemini alliance between Maersk and Hapag-Lloyd on hold to demand “more information” in order to determine “potential competitive impacts”.

Maersk’s partnering with Hapag-Lloyd follows the Danish carrier’s decision last year to bring to an end the 2M capacity-sharing alliance with MSC. The Gemini cooperation was filled for approval by the FMC on 31 May 2024.The plan was for the Gemini agreement to enter into force on 15 July, with operational implementation from February 2025, had the FMC not intervened. Gemini would offer a combined capacity of 6 million TEU, just above MSC’s standalone 5.6 million TEU.

In its request for additional information (RFAI), the FMC has considered that the Gemini Cooperation Agreement as submitted lacks sufficient detail to allow for a complete analysis of its potential competitive impacts. Reconsideration of the agreement will not commence until the FMC has received a fully compliant response to its inquiry. After the response is deemed complete, the FMC has 45 days to review the agreement for competitive and legal concerns before it becomes effective.

CLECAT welcomes the FMC’s actions to ensure fair competition and prevent unfair practices. With the end of the Consortia Block Exemption Regulation in April 2024, and despite the fact that consortia agreements are not approved ex ante by the European Commission, we hope that such developments would trigger an effective oversight of consortia/alliance agreements by European competition authorities. This oversight should enforce competition rules in the evolving landscape of the liner shipping industry, enhancing the accountability of shipping lines and trust between the stakeholders.

Source: FMC, The Loadstar