11 October 2024

GEMINI WARNS OF POTENTIAL 'MELTDOWN' WHEN SUEZ REOPENS

This week, The Loadstar reported that Gemini carriers, including Maersk and Hapag-Lloyd, are warning of an "operational meltdown" when the Suez Canal reopens for shipping traffic. Due to continued volatility and safety concerns in the Red Sea, both carriers have decided to reroute their Gemini Cooperation services around the Cape of Good Hope, with the new network expected to be phased in by February 2025.

Maersk's Chief Commercial Officer, Karsten Kildahl, explained that the decision was made to give customers time to plan their operations and manage lead times effectively. He emphasized that the return to the Suez Canal will not be immediate due to ongoing uncertainties and the need for stable, predictable shipping flows.

Kildahl also warned of significant operational challenges once the Suez reopens, predicting weeks or even months of congestion as vessels clash for passage, which could result in a "meltdown" for global shipping operations. Despite these challenges, the Gemini carriers are committed to maintaining schedule reliability, targeting over 90% once the Cape of Good Hope network is fully operational. The new network will consist of 29 mainliner services and 28 intra-regional shuttle services, with a fleet of approximately 340 vessels.