Maersk and Hapag-Lloyd’s operational alliance called the Gemini Cooperation took effect Monday, the Federal Maritime Commission said in a Monday press release.
Originally set to take effect July 15, the FMC halted the operational agreement from the two ocean shipping giants because it was determined the agreement lacked details on its potential competitive impacts.
Newly filed agreements or already-operative agreements can be assessed by the commission for the likelihood of an unreasonable increase in transportation costs or a decrease in transportation service. The agency can seek an injunction in federal district court if it makes such a finding.
“The Commission has not determined to seek an injunction against the Gemini Cooperation Agreement at this time,” the FMC said.
Still, the FMC says that the Gemini Cooperation will be subject to extensive monitoring which commenced Monday. Current law did not provide the commission with any additional time to evaluate the operational agreement from Maersk and Hapag-Lloyd and they have no viable way to stop it from taking effect, Chairman Daniel Maffei said in an emailed statement to Supply Chain Dive.
“While the agreement does take effect, I have joined my colleagues in ordering FMC staff to engage in immediate and ongoing rigorous monitoring of the Gemini Cooperation Agreement to ensure that it doesn’t illegally impact U.S. importers, exporters, covered service providers, and consumers,” Maffei said.
Earlier this year, Maersk and Hapag-Lloyd announced they’d be forming the Gemini Cooperation. The alliance is set to formally launch shortly after Maersk’s 2M alliance with MSC expires in January 2025. While MSC has not formed another alliance, it has entered an agreement with Zim to swap slots and share vessels, according to an emailed press release from Zim.
