The Network of the Future: Service network information

In January 2024, Hapag-Lloyd AG (Hapag-Lloyd) and Maersk A/S (Maersk) announced a new long-term operational collaboration under the name of Gemini – referred to as the “Gemini Cooperation”. The operational collaboration covers the Ocean freight network on East West trades and will come into effect on February 1st, 2025.

On 10 September, Maersk and Hapag-Lloyd release a network update covering operational insights into how the network has evolved since announcement, and presenting an alternative Cape of Good Hope network due to the on-going conflict in the Red Sea.

Network options:

• We have and will continue monitoring the situation in the Middle East very closely and hope that the situation will soon be resolved.
• So far, we have presented a network that transits through the Red Sea for the start of the Gemini partnership in February 2025.
• In addition, we are now also presenting an alternative Cape of Good Hope network following the same design principles and developed to deliver the reliability goals of the Gemini partnership.
• We will return to the Red Sea as soon as it is safe to do so, but as the situation remains highly dynamic, we will be prepared for either scenario – a return to the Red Sea, or a continuation of the alternative route south of the Cape of Good Hope.
• As there is still some time until the network will be phased in in February, we will continue monitoring the situation and update our customers as soon as additional information can be released.
• Irrespective of whether the Gemini partnership will begin with a Trans Suez or Cape or Good Hope network, the ambition is to provide industry-leading reliability (90% SeaIntel when fully phased in).

The safety of our crews is always a top priority and guiding principle. We will return to a Trans Suez network as soon as it is safe to do so, but as the situation remains highly dynamic, we will be prepared for either scenario. We expect to confirm the network selected for phase-in in October.

In August, our crisis management team provided an overview of the current security situation and an outlook assessment. To decide how to proceed, we look at certain triggers like demonstrated protection, threat levels and the geopolitical context to assess the security situation. There is currently no indication that we can expect the situation in the Red Sea to get better or resolved in the short term. However, there is also still some time until the phase in of the Network of the Future in February 2025, and the situation remains highly dynamic. We will return to the Red Sea as soon as it is safe to do so. For now, we are focusing on ensuring we are ready and in a strong position for either scenario, whether Trans Suez or Cape of Good Hope – and will provide further updates as we get closer to February.

We have set the ambitious target of delivering schedule reliability of above 90% once the network is fully phased in.

Our network will centre around hubs where we aim to have the highest levels of productivity and reliability. Many of these hubs will be owned or managed by Hapag-Lloyd/HGT or APM Terminals, which have consistently invested in enhancing their capabilities.

APM Terminal’s hubs are among the highest performing in the world according to a report from Drewry, an independent maritime research and consulting services company. Already, we have seen the productivity of APM Terminals’ hubs increase by an average of 5% over 2022 and 9% over 2023. Productivity in the hubs, measured as Port Moves Per Hour (PMPH) is up by 22% YTD compared to 2021.

This is expected to improve even further with systems and processes being upgraded to ensure port stays and transshipment layover times are as quick and efficient as possible, and that the risk of disruption is reduced.

When disruptions do arise, these hubs are being optimised to ensure we will have the ability to respond with agility, so any issues can be swiftly isolated, and any operational bottlenecks contained so that they do not affect the rest of the network.

We have set the ambitious target of delivering schedule reliability of above 90% once the network is fully phased in. The new operational collaboration combines the expertise of two strong partners and will deliver improved reliability through:

• An operator controlled modern fleet and dedicated teams
• The 27/29 mainliner services will be ‘leaner’ as they will have on average almost half the amount of port calls per service rotation compared to a typical Asia – Europe service. This means the average number of stops a container will make between the origin and final destination will decrease significantly. With ports being a major source of unreliability, this will reduce the opportunities for disruptions along the way and improve reliability.
• Serving as an extension to the mainliner service, 30/30 lean intra-regional shuttles connect hubs to strategic gateways and will mostly have 2 load port calls per service. This set-up reduces the overall risk of disruptions and allows isolation of the operational bottleneck when it arises. The shuttles will also have the right priority in the hubs to ensure the connectivity. All these will largely protect us from disruptions and ensure high reliability on overall system.
• The hub terminals linking mainliners and shuttles demonstrate exceptional productivity and reliability. APM Terminals and Hanseatic Global Terminals (HGT) have equity presence and a level of operational control in the majority of these hubs and will continue to invest in seamless and efficient connectivity.

Already, we have seen the productivity of APMT hubs increase by an average of 5% over 2022 and 9% over 2023. From 2020-2023, APMT have invested more than USD 3bn in hubs and increased capacity with 30%. APMT are investing in improving this further, ensuring their systems and processes are equipped to ensure port stays and transshipment layover times are as quick and efficient as possible. By incorporating these hubs, we can also greatly reduce the risk of disruption.

Maersk (Net Zero 2040) and Hapag-Lloyd (Net Zero 2045) have the most ambitious decarbonisation targets in the industry, and they remain unchanged. However, the new network aims to provide a more fuel-efficient setup that will reduce the greenhouse emissions per transported container already in 2025 and both parties are committed to continue to drive further efficiency in the years to come.