Gemini to relaunch Asia-Middle East Loop, but drops Jebel Ali call

Gemini Cooperation partners Maersk and Hapag-Lloyd are to relaunch their Far East-Middle East Loop at the weekend.

Marketed as AGX by Hapag-Lloyd and FM1 by Maersk, the service represents a fresh capacity injection for importers in the Gulf beleaguered after nearly eight months of conflict.

There is one key change, however – the Middle East call at Jebel Ali has been replaced by a call at Khor Fakkan, which, being outside the Hormuz Straits, has emerged as a key Gulf bypass port since the conflict began.

The revised port rotation will be: Qingdao-Ningbo-Tanjung Pelepas-Khor Fakkan-Singapore-Qingdao.

The service was ended on 27 March after it became clear the US-Iran conflict would last longer than initially hoped for.

“The FM1 re-launch provides customers with additional direct ocean connectivity to Khor Fakkan, while we continue to operate with the necessary precautions across the Middle East,” Maersk told customers. “Existing booking restrictions and cargo acceptance guidelines remain applicable.

“Maersk’s existing landside solutions will complement the re-launched service and ensure we are able to serve the Upper Gulf,” it added.

The switch from Jebel Ali to Khor Fakkan is part of wider trend that has, understandably, seen volumes being shipped directly to Dubai and Abu Dhabi plummet, and according to a recent Drewry analysis, is expected to herald the end of their respective transhipment volumes.

The AGX will formally relaunch with the departure of the 8,400 teu Maersk Athabasca from Qingdao on 17 October, which is now due to arrive at Khor Fakkan on 16 November, according to the new proforma schedule.

The vessel is currently deployed on Gemini’s US3 transpacific service and, according to AIS, arrived at that service’s base port, Shanghai, on Saturday.

In its previous iteration, according to Xeneta’s eeSea liner database, the service deployed eight vessels with an average capacity of 10,900 teu.

Meanwhile, freight rates on the Asia-Middle East trade have soared since the conflict began, with the latest price index – which records aggregate all-in contract and spot rates – from Container Trades Statistics (CTS) for August showing year-on-year growth of 130% on August 2025 to hit its highest ever level, CTS confirmed to The Loadstar today.

And, according to Xeneta’s spot rate data from early September, rates to Khor Fakkan have increased an eye-watering 479% since 28 February, beating Covid-era highs, to hit $10,626 per 40ft.

“These extraordinary increases have seen spot rates on these trades surpass previous record highs set during the Covid disruption,” said Xeneta chief analyst Peter Sand. “The increased cost is in addition to longer transit times and worse reliability, but while the Strait of Hormuz remains effectively closed to container vessels, shippers have little other option to get their goods into the Gulf region.”

Trucking landbridges to Gulf destinations have supported this transition, and volumes at Khor Fakkan have jumped as result.

“Gulftainer has taken weekly throughput from around 8,000 teu to 65,000 teu, a 700% increase, with a weekly target of 100,000 teu expected within the next month or two,” Drewry’s associate director of ports and terminals, Eirik Hooper, recently noted.

“This is a facility that was built as a transhipment terminal, so it didn’t really even have a truck gate. Every box left by sea – they’ve had to build the gate complex from nothing, and have gone from about 100 truck movements a day to 8,500.

“It’s remarkable operational achievement,” he added.

In late August, DP World revealed it had moved 500,000 teu through Gulf overland corridors since the beginning of March, and recently acquired a further 700 trucks for deployment on landbridges.