Maersk Surprises Industry Abandoning Felixstowe for Smaller London Gateway
Maersk shocked the container shipping industry this week with the news that come February 2025 it will transition its large containerships along with those of its new partner Hapag-Lloyd from the UK’s Port of Felixstowe to the smaller London Gateway. It is a significant competitive blow for Hutchinson Ports operator of Felixstowe which has already been seeing DP World rapidly challenge it with the London Gate Terminal.
In an operational advisory issued on November 18, Maersk revealed it is replacing Felixstowe in favor of the London Gateway port. The decision was reported to be part of the new Gemini Cooperation’s launch in February with the declared goal of achieving an unheard-of industry schedule reliability of 90 percent.
The two lines are establishing the cooperation under the tagline of “The Network of the Future.” Maersk told customers that the change will affect the Asia–Europe trade which would join the Middle East–Europe trade at London Gateway. Its trans-Atlantic route with remain unchanged at Southampton. The company has been a major part of Felxistone where it typically has as many as two ships a week and makes up a key part of the nearly 2,000 ship calls annually at the Huthchison-operated port.
“This strategic decision comes as part of the ambition to reduce network complexity with mostly single operator loops and fewer port calls per service, and is aimed at enhancing reliability, reach, and speed for our customers. Due to this change, Felixstowe will not be a part of Maersk and Hapag-Lloyd’s shared Gemini network,” Maersk wrote to customers. They did not announce the timing of the switch but said it would be part of the Gemini Cooperation and be implemented as it phases out the current 2M alliance with MSC Mediterranean Shipping Company.
Felixstowe is one of the UK’s oldest ports tracing its historical roots to 1886 although the modern port is considered to have started in 1969 and its second terminal in 1986. Today it handles more than 4 million TEU annually.
London Gateway which was opened just 11 years ago in November 2013, highlights its convenient location on the River Thames just 28 miles from London. Currently, the London Gateway handles about 2 million TEUs annually.
The decision to transfer port calls to London Gateway is a major win for the port that is operated by DP World. In August, DP World said it will be investing £1 billion ($1.3 billion) in expanding the facility with the aim of increasing the terminal’s capacity and enhancing the UK’s international trade resilience. They also highlighted the installation of new cranes during the summer that they said would support a 50 percent increase in handling capacity.
The investment will go into building two additional berths and a second rail terminal, with the ultimate goal aimed at transforming the London Gateway to the largest port in the UK accounting for 55 percent of the UK’s cargo flow through the southeast region. Just this month, DP World launched the fourth berth at the facility constructed at a cost of £350 million ($451 million).
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