Hapag-Lloyd Orders New Ships for Gemini Network as Profits Halve

The German carrier pushes ahead with fleet modernization to support its new alliance strategy despite a 50% drop in earnings.

HAMBURG, Germany, November 13 — Hapag-Lloyd has approved a significant investment program to acquire up to 22 new vessels in the sub-5,000 TEU class, a strategic move designed to reinforce the "hub-and-spoke" network of its upcoming Gemini Cooperation with Maersk. 

The decision comes as the carrier reports a 9% increase in transport volumes for the first nine months of 2025, which helped offset a 4.8% decline in average freight rates.

Leadership Bets on Gemini

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In its nine-month financial report released this week, Hapag-Lloyd posted a Group EBITDA of $2.8 billion, a figure that, while solid, represents a sharp decline from the pandemic-era peaks of the previous year. 

CEO Rolf Habben Jansen highlighted the "volatile development of demand and freight rates" but emphasized the carrier's commitment to quality. 

The new vessel orders are explicitly linked to the Gemini network's operational requirements, focusing on modern, efficient tonnage to serve as shuttles between major hubs and regional ports.

Reliability Over Raw Scale

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Hapag-Lloyd is navigating a transition year. The industry is moving away from the frenetic spot market spikes of 2022-2024 into a period of "normalization," characterized by lower rates and higher operational costs due to Red Sea diversions. 

The carrier's strategy diverges from the sheer scale-seeking of competitors like MSC; instead, Hapag-Lloyd is optimizing for reliability (targeting 90% schedule reliability with Gemini) and efficiency. 

The order for smaller vessels underscores this focus, these ships are the workhorses needed to make a high-reliability hub-and-spoke model function effectively.

Performance at a Glance

Financials (9M 2025):

• Group EBITDA: $2.8 billion (down from pandemic highs).
• Group EBIT: $0.9 billion.
• Transport Volume: 10.2 million TEU (+9% year-over-year).
• Average Freight Rate: $1,397/TEU (-4.8% year-over-year).

Fleet Investment:

• New Order: Up to 22 vessels in the <5,000 TEU class.
• Purpose: Fleet renewal and support for the Gemini Cooperation's hub-and-spoke model.

Ripple Effects Across the Supply Chain

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For the shipbuilding sector, Hapag-Lloyd's order is a vote of confidence in the demand for specialized, efficient feeder tonnage, countering the narrative that the orderbook is entirely saturated with ultra-large vessels. 

For shippers, this investment signals Hapag-Lloyd's serious intent to deliver on the Gemini promise of high reliability. 

By owning and controlling the shuttle vessels rather than relying on the volatile charter market, the carrier aims to eliminate one of the primary causes of transshipment delays.

A Quality-First Playbook

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Hapag-Lloyd is playing the "quality" card. In a market where rates are commoditizing, they are betting that shippers will pay a premium, or at least remain loyal, for on-time performance. 

The decision to invest in new steel during a profit downturn demonstrates long-term thinking; they are building the physical infrastructure necessary to make the Gemini concept work, rather than retreating into cost-cutting mode.

Countdown to Gemini Launch

The carrier has narrowed its full-year 2025 guidance, expecting Group EBITDA to land between $3.1 billion and $3.6 billion. 

The industry will be watching closely for the finalized contracts on the 22 new vessels and the official launch of the Gemini network in February 2026.