Maersk and Hapag-Lloyd’s proposed operational alliance will no longer become effective July 15, as the Federal Maritime Commission is seeking additional information from the two ocean carriers.
“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,” according to a July 12 press release.
The agency said it will reconsider allowing the commencement of the agreement once it receives a fully compliant response to its inquiry. The information sought out by the FMC is commercially sensitive and is not publicly published.
Once responses are received, the FMC has 45 days to review the agreement for competitive and legal concerns before it becomes effective. A 15-day public comment period will open next week once the agency’s request has been made public on the Federal Register. In June, the FMC also opened a 12-day public comment period on the Gemini Cooperation, which is part of the commission’s process for evaluating the alliance.
“This is fairly standard from the FMC. We do not anticipate any impact to the Gemini network and look forward to continuing to work with the FMC,” Maersk told Supply Chain Dive in an email.
Announced earlier this year, the Gemini Cooperation would create a simplified port structure aimed at reducing port calls. The alliance would also mandate either Maersk or Hapag-Lloyd act as the sole operator of a vessel on a mainline service to reduce complexity. The new agreement came after Maersk and MSC said it would discontinue the 2M alliance, set to expire in 2025.
Editor's note: This story was updated with a statement from Maersk.
