Suffolk firms count cost of Maersk pulling out of Felixstowe

Maersk said it had conducted a review of all the ports and terminals in its network and concluded London Gateway was the best port to serve its customers within its shared network with Hapag-Lloyd called Gemini.

It added that from February it will phase in its new network strategy and more details would be released over the coming weeks.

Gemini is a collaboration between the two global logistics businesses and its commencement in early 2025 coincides with a decision to start their Cape of Good Hope network due to safety concerns in the Red Sea.

“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,” Maersk said in a statement.

“Due to this change, Felixstowe will not be a part of Maersk and Hapag-Lloyd’s shared Gemini network.”

It said the rest of its operation outside of the network remained unchanged.

Suffolk Chamber of Commerce said the decision was “certainly disappointing” but that it remained unclear what it might mean for logistics operators in the county.

“Whatever the full commercial rationale for Maersk’s relocation to Thames Gateway, it makes it even more important that the rail and road infrastructure in and out of the Port of Felixstowe is the very best it can be to retain and attract businesses, as competition from other ports looks set only to intensify,” the Chamber said.

“This means that the Suffolk system, which came together as one during The Suffolk Convention last month, needs to redouble and concentrate its lobbying efforts to government both for the speedy approval of the Ely/Haughley rail junctions and the accelerated investment in the A14 corridor, including the Orwell Bridge and the Copdock Interchange, and the wider roads network across all points of the compass in and around Ipswich.”

London Gateway operator DP World announced last month that it was investing £1bn to make it the largest container port within five years, with capacity increasing due to the construction of two new berths and a second rail terminal.

DP World UK chie executive Ernst Schulze said: “With extra capacity comes the reliability and supply chain resilience so important to our customers and consumers, especially in uncertain times such as the pandemic and disruption due to geopolitical events.”