Rival carriers are poised to capitalize on the untested ‘hub & spoke’ network strategy proposed by the upcoming Gemini Cooperation alliance. While the Gemini hubs in North Europe include Rotterdam and the German ports of Wilhelmshaven and Bremerhaven, some ports, such as the Baltic hub of DCT Gdansk, may lose their direct call status, says an article published on loadstar website.
Summary
- he upcoming Gemini Cooperation alliance proposes an untested ‘hub & spoke’ network strategy, creating opportunities for rival carriers.
- Gemini’s mainline vessels will have direct port calls in North Europe, with hubs at Rotterdam and German ports.
- Dedicated shuttle or feeder services will be provided to other gateways.
- Prominent ports like DCT Gdansk may lose their direct call status and become ‘spoke’ ports.
- Gemini partners, including Hapag-Lloyd, plan to engage in information-sharing with customers and partners throughout the current quarter.
- A preliminary schedule is expected in Q3, with the final schedule to be published later in the year.
Direct Calls In North Europe And Impact On Ports
Gemini’s mainline vessels will have direct port calls in North Europe, with hubs at Rotterdam and German ports, and dedicated shuttle or feeder services to other gateways. However, prominent ports accustomed to handling large vessels, like DCT Gdansk, are likely to become ‘spoke’ ports instead of maintaining direct call status.
Gemini’s Information-Sharing And Preliminary Schedule
Gemini partners, including Hapag-Lloyd, plan to engage in “info-sharing” with customers and partners throughout the current quarter. A preliminary schedule is expected in Q3, allowing for feedback before the final schedule is published later in the year.
Concerns And Perspectives On Gemini’s Plans
Steve Wray, head of maritime advisory at Infrata, expressed concerns about the changes, drawing from his experience with past industry shifts. He noted that while alliance changes may not be as disruptive as mergers, the current geopolitical crisis in the Red Sea and supply-demand imbalances due to over-ordering of ultra-large vessels add complexity to the situation.
Asian End Of Gemini’s Network And Reliability Goals
Wray highlighted that no direct services are planned to South Korea or Japan at the Asian end of Gemini’s proposed Asia-North Europe network. He expressed skepticism about Gemini’s ambitious target of achieving a 90% reliability record, stating that only time will tell if such aspirations can be met.
Speculation On The Alliance Members And Potential Impact
Wray speculated on the options for remaining THE Alliance members (ONE, Yang Ming, and HMM) following Hapag-Lloyd’s departure. He suggested that the departure could lead to the return of Wan Hai and PIL to the North European market, maintaining an “Asian feel” to THE Alliance group. The pressure is particularly on ONE, with discussions ongoing to determine its strategy amid the evolving alliance landscape.
Anticipating Ongoing Changes And Industry Impact
Wray concluded that the recent announcement by Hapag-Lloyd and Maersk is likely just the beginning of broader changes in the alliance structures. As decisions are made, the industry can expect further amendments to port calls and voyage rotations, with the repercussions of these changes reverberating throughout the ocean carrier alliance landscape.
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Source: loadstar
