Grapevine

By Standard Media
Sep 12, 2024

Tough times drive shippers into 'uneasy' pacts

Maersk Kenya Ltd truck at Keitt Exporters Ltd in Nairobi. [File, Standard]

The global shipping industry is experiencing major disruptions that are driving competitors to partner in order to survive.

The two biggest shipping lines in the world which are also competitors - A.P. Moller Maersk and Hapag-Lloyd AG - have now partnered to create an entity called the Gemini Cooperation that will ply African routes especially round the Cape of Good Hope in South Africa. The Suez Canal in Egypt has become difficult to pass due to attacks from the Houthi rebels.

The Gemini Cooperation, set to officially launch in February 2025, will create a vast network of nearly 300 vessels with a capacity exceeding 3 million TEU, aiming for over 90 per cent schedule reliability.