A shuffling of the major container alliances may bring the advantages of large container ships on the East-West trades to life, reports Seatrade Maritime News.
Around a decade ago, cost and efficiency forecasts were made based on the deployment of the largest container ships on the East-West trades. While they never materialised, those benefits may soon be realised once the new container alliances enter into force in 2025, Poul Hestbaek, CEO of Folk Maritime said at the Saudi Maritime and Logistics Congress 2024.
Upcoming change in container alliances
Speaking in a broad session on national, regional and global trends affecting Saudi Arabia’s maritime industries, Hestbaek raised the upcoming change in container alliances after 10 years of three alliances dominating the major container trades. The “implosion” of the alliances is set to bring new schedules from February 2025.
That expectation never became a reality, he added, but is being promised by one of the new consortia. While never naming the alliance, Hestbaek did say it was a two-company affair, making it clear he was talking about the Gemini Alliance of Maersk and Hapag-Lloyd.
The Folk Maritime CEO is no stranger to Maersk, having spent over 20 years at Hamburg Süd. Hestbaek was a regional manager at Hamburg Süd when Maersk acquired the company, and rose to become its CEO from April 2021 through until the 150-year-old brand was retired in 2024.
The Gemini Co-operation recently revealed its new hub-and-spoke network for 2025, and is due to choose between the Suez and Cape of Good Hope versions in October. Both of the plans use streamlined mainline services, with an average of half the number of calls compared to current networks, linked beyond the chosen hub ports using shuttle services. Gemini has set itself a target of over 90% service reliability.
Success for Gemini could spell good news for Folk Maritime, he added, as big ships dropping cargoes at main hub ports will create opportunities for feeder and short sea lines like Folk to deliver the “last sea mile” from hub to destination.
Did you Subscribe to our daily newsletter?
It’s Free Click here to Subscribe!
Source: Seatrade Maritime News
