Shipping
US COMMISSION HALTS PROGRESS OF GEMINI ALLIANCE
July 12, 2024

The US Federal Maritime Commission (FMC) has requested additional information regarding the Gemini Alliance agreement between Maersk and Hapag-Lloyd, which was scheduled to take effect on July 15.

 

The request comes as FMC raised  "potential competitive impacts of the arrangement" between two of the world's top five ocean carriers.

 

Maersk and Hapag-Lloyd filed the Gemini Cooperation Agreement with the FMC on May 31, 2024.

 

The Gemini Cooperation Agreement would have gone into effect on July 15, 2024, absent this action by the Commission.

 

"A global operational alliance between two of the world's largest container shipping companies will not go into effect next week because more information is needed by the Federal Maritime Commission to determine the potential competitive impacts of the arrangement," FMC said in a statement.

 

It added that the agreement would allow these companies to share vessels in the trades between the United States and Asia, the Middle East, and Europe. 

 

"Agreements become effective 45 days after filing unless the Commission issues a Request for Additional Information (RFAI) as it is doing here," FMC added.

 

It noted that the Commission uses the RFAI process to identify and achieve clarity on matters that were not addressed by the filing parties or where insufficient information was provided in the originally filed agreement.

 

"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," FMC said.

 

It added that information sought as part of an RFAI is "commercially sensitive and is not publicly published."

 

"Re-consideration of the agreement will not commence until the Commission has received a fully compliant response to its inquiry," the independent federal agency responsible for regulating the US international ocean transportation system for the benefit of US exporters, importers, and the US consumer, added.

 

The Commission noted that it has 45 days from when it determines responses to the RFAI are deemed complete to review the agreement for competitive and legal concerns before it becomes effective.     

 

"A 15-day public comment period will open once public notice of the RFAI is published in the Federal Register next week," FMC said.