Gemini Cooperation: FMC requests additional information
"Agreement as submitted lacks sufficient detail to allow for a complete analysis of its potential competitive impacts."
The U.S. Federal Maritime Commission has sought more information from Maersk and Hapag-Lloyd on the proposed Gemini Cooperation.
"Maersk and Hapag-Lloyd filed the Gemini Cooperation Agreement (No. 201429) at the Commission on May 31, 2024. 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," says an official release.
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 release added. "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."
Information sought as part of an RFAI is commercially sensitive and is not publicly published, the release added. "Re-consideration of the agreement will not commence until the Commission has received a fully compliant response to its inquiry. The Commission 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.
The Gemini Cooperation Agreement would have gone into effect July 15, 2024 without the RFAI, the release added.
"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," says an official statement from Maersk.
Hapag-Lloyd and Maersk signed an agreement for a new long-term operational partnership called Gemini Cooperation, which will start in February 2025, in January 2024.
The Gemini Cooperation will cover seven global (sub)trades and offer 26 mainline services. The network will be centred around 12 key hub ports (10 owned and/or controlled terminals and two highly efficient operations in Singapore and Cartagena).
The alliance will run 32 dedicated regional shuttle services to and from these key hubs to ensure seamless connections to many major ports. The fleet of the new partnership will consist of some 290 modern and efficient vessels with an overall standing capacity of 3.4 million TEU, many ready to adopt cleaner fuels.
(Video Courtesy: Maersk)