Full Steam Ahead! This setting is shown on the engine telegraph of the Gemini partners, Maersk and Hapag-Lloyd, that joined forces on 01FEB25. It applies not only to the sailing speed of the approximately 340 container ships jointly managed by the duo, but also to their entire business model. The model is a first in global maritime container shipping, strongly inspired by passenger and air freight traffic. Specifics were recently explained to media people by Rolf Habben Jansen, CEO Hapag-Lloyd, at the famous Hansa Theater in Hamburg.

Adopting the hub- and-spoke model
In aviation, the hub-and-spoke scheme has long been practiced and proven its worth. It effectively links core hubs with interconnected sub-hubs. This structure centralizes decision-making and resource allocation, while also simplifying communication channels. Its success is evidenced by the many global passenger and cargo airlines that organize their routes around a hub-and-spoke model to maximize efficiency and minimize costs.
Now, Gemini has adapted the scheme and aligned its network according to this system. “We will call at two or a maximum of three ports in the Far East and act accordingly in Europe,” Hapag-Lloyd’s CEO, Rolf Habben Jansen confirmed to journalists last Tuesday evening (04FEB25). For Europe, this means that mega-ships such as Hapag-Lloyd’s Berlin Express, which can transport up to 24,000 TEU, will only call at Tangier, Rotterdam and – occasionally – Wilhelmshaven, on westbound routes. At these key harbors, smaller feeder vessels will take over the shipments and distribute them across Europe, calling ports like Le Havre, Hamburg, Copenhagen or Gdansk, for example.

Improving punctuality
In Hamburg, Hapag-Lloyd’s hometown, the maritime community is gnashing its teeth. This is because in the ranking of major European ports, the city will only play the second fiddle within Gemini’s hub-and-spoke network. However, thanks to the smaller feeder vessels, the tonnage handled remains more or less the same.
The scheme based on core and secondary routes will increase both carriers’ punctuality and hence their product quality, reasons Mr. Habben Jansen. This is a much-needed improvement because data shows that almost 50% of the vessels traveling on routes between Europe, North America or the Far East are delayed. It is of little comfort that the punctuality rates of competitors such as Yang Ming, Ocean Network Express, HMM, Cosco or Evergreen, are similarly critical.
“We intend to reach a punctuality rate of 90%,” Habben Jansen proclaimed. If successful, this would be a quantum leap, increasing the quality standards for the entire maritime industry. Achieving this is not rocket science, he holds. His calculation: A higher number of port calls exponentially increases operational delays. There is always a strike by dockers somewhere, certain ports are congested, and severe weather conditions are other obstacles delaying voyages. Hence: fewer port calls lead to greater adherence to schedules, supported by early data transmissions.
Even though Maersk provides 60% of the jointly operated fleet capacity, all Gemini management decisions are made on a 50/50 basis, Rolf Habben Jansen emphasized.

Hapag-Lloyd keeps growing its terminal business
While competitors such as CMA CGM, MSC and Maersk used the extra profits generated during the Covid pandemic to primarily build up a fleet of cargo aircraft on their way to becoming multimodal transport providers, Hapag-Lloyd has focused on acquiring ocean freight terminals. To this end, the subsidiary, Hanseatic Global Terminal, was founded in 2023, and now manages 20 strategically located terminals including ports in Europe, Latin America, the USA, and India. The company is interested in further acquisitions at strategically important harbors but is not willing to pay astronomical prices, says the manager.

In 2024, 4.6 billion small shipments with a value of less than 22 EUR entered the European Union. Most arrive by cargo plane in Liège, but also in Copenhagen, Milan or Madrid. Repeated inspections by customs officers revealed that the product quality is often inadequate, and items tend to pose a health risk to users. On Wednesday (05FEB25) Brussels kicked off an initiative to regulate online retailers and the import of cheap goods from third countries.

The e-tailers SHEIN and TEMU are particularly affected by Brussel’s advance, as are Amazon and Etsy. No customs duties are levied on their products entering the EU if the value of a single shipment is less than 150 euros. The bureaucratic effort would be too great and the revenue from duties would be too low for filling the coffers of the EU member states, as shown in the past. What also favors these e-tailers financially is the fact that they only pay 4.8% in turnover taxes (VAT), in contrast to 19%, 20%, 22% or even more percent in most EU countries. This is the case, because they have  based their EU headquarters in tax haven Ireland.

EU deprives them of privileges
For a long time, Brussels turned a blind eye to the activities of foreign low-cost suppliers. Meanwhile, however, the EU competition watchdogs seem to have woken up from their hibernation. On Wednesday (05FEB25) the Commission announced plans to levy handling fees for e-commerce shipments entering the block in order to offset the costs of customs inspections. A cornerstone of the intended step is the abolition of the current de minimis tax exemption for shipments valuing less than 150 euros. Simultaneously, Brussels announced measures to step up controls at airports to prevent the trade of unsafe or non-EU-compliant low-priced products.

Constant breaches of consumer protection
Recent checks at Liège Airport, one of the main e-com hubs in Europe, have revealed that the content of many e-com shipments violate EU safety regulations, or the products are made of hazardous materials which pose a health risk to users, particularly children.
Some of the complaints are alarming, says Sylvia Maurer from the European Consumer Organization BEUC: “We found many chemicals of concern in children’s toys or cosmetics. But also, electrical products that can cause fires or smoke detectors that don’t report smoke. Motorcycle helmets that meet absolutely no safety standards and break immediately. These products pose a huge risk for EU consumers,” she warned.
Following repeated breaches of consumer protection, Brussels announced that proceedings have been opened against Chinese e-tailer SHEIN.

EU Parliament still needs to consent the advance
EU Trade Commissioner Maros Sefcovic stated; “The number of parcels has risen sharply because some of them are deliberately fragmented in order to remain under 150 euros. This means an enormous amount of work for the customs authorities.” The planned reform envisages that the e-tailers themselves, rather than the buyers, will be liable for customs clearance and possible duties. However, the proposed new rule still must be consented by the EU Parliament before it becomes practical.
Only hours before the EU announced its decision on e-com, U.S. President Trump had imposed a 10% tax increase on all Chinese imports. In addition, hesuspended the “de minimis” customs exemption that allowed U.S. shoppers and importers to avoid duties on packages worth below USD 800.
However, market experts point out that ending de minimis is a double-edged sword. It could result in price hikes for American shoppers, but simultaneously also lower the tsunami of China produced low-cost products flooding the U.S., so playing politically into Trump’s hands.

Who does the elimination of de minimis hurt more: China or the U.S.?
Id this measure will have any effect on the trade flows between China and the U.S. remains to be seen. The National Association of Manufacturers are convinced that it will harm U.S. consumers instead. In a study conducted together with other industry groups the authors warned of steep price increases for U.S. consumers in combination with red tape hurdles and administrative fees jeopardizing imports. “Eliminating de minimis is the equivalent of a tax hike that would disproportionately impact small business owners and low-income consumers who purchase affordable goods online,”their bulletin reads. Next to Chinese online retailers, the main victims of the new regulation are likely to be low-income American households. The days when they could buy T-shirts for two bucks or pants for ten dollars seem to be gone, critics warn. The de minimis threshold was previously USD 200 but increased to USD 800 in 2015, when the Trade Facilitation and Trade Enforcement Act became law, ensuring a fair and competitive trade environment. Even under the Biden administration, the complete abolition of a tax-free allowance was discussed, which would mean that all imported goods would have to be cleared through customs according to their value. However, this is extremely time-consuming and difficult to control due to an increasing lack of trained personnel.