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Maersk, Hapag-Lloyd will add more vessels to alliance if Red Sea disruption continues
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Maersk, Hapag-Lloyd will add more vessels to alliance if Red Sea disruption continues
Sep 10, 2024 6:02 PM

COPENHAGEN, Sept 10 (Reuters) - Maersk and

Hapag-Lloyd ( HLAGF ) could add more container vessels to an

alliance announced earlier this year if shipping disruptions in

the Red Sea continue, the companies said on Tuesday.

Attacks in the Red Sea by Iran-aligned Houthi militants have

since late last year forced shipping companies to reroute

traffic away from the Suez Canal and instead sail around Africa,

a longer journey that ties up more capacity.

Maersk and Hapag-Lloyd ( HLAGF ) in January said they had agreed on a

new collaboration, starting in February of 2025, to transport a

combined 3.4 million containers annually with a fleet of 290

vessels, in a tie-up known as the Gemini Cooperation.

But the two shipping giants on Tuesday said that the

collaboration could grow to 340 vessels and transport a combined

3.7 million containers if the disruptions in the Red Sea

continue.

Joining forces will allow Hapag-Lloyd ( HLAGF ) and Maersk to offer

more frequent and flexible services, making their operations

more efficient and reliable, they said.

The companies will announce in October this year whether

they expect to implement their original plan, which relies on

the Red Sea and Suez, or instead adopt the alternative plan of

sailing around Africa with a larger fleet, Maersk said.

Hapag-Lloyd ( HLAGF ) and Maersk have set an ambitious target of

delivering schedule reliability of above 90% once the network is

fully phased in, with Denmark's Maersk providing 60% of the

vessels and Germany's Hapag-Lloyd ( HLAGF ) 40%, they said in January.

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