Maersk, Hapag-Lloyd plan to sail south of Africa into 2025

A.P. Moller Maersk A/S and Hapag-Lloyd AG, the two container giants starting a vessel-sharing cooperation, plan to begin their partnership sailing south of Africa, indicating they expect the Red Sea to remain unsafe well into 2025.

The companies have decided to begin the Gemini Cooperation on Feb. 1 by using the Cape of Good Hope network, according to a notice to customers published by Copenhagen-based Maersk on Wednesday.

Last month, the two shipping lines presented details of their new partnership, which included two alternative east-work networks, depending on the accessibility through the Red Sea. On Wednesday, Maersk said they decided on the long route due to “continued safety concerns” along the shorter transit.

Houthi attacks in the Red Sea have since late last year forced container vessels to sail around southern Africa.
That has absorbed some of the vessel overcapacity in the container industry, which in turn has helped boost container rates. Maersk had said in August it expected the conflict to last at least until the end of 2024.

“As the situation remains highly dynamic, Hapag-Lloyd and Maersk will return to the Red Sea when it is safe to do so,” Maersk said in Wednesday’s customer notice.