UK shipping expert points out major flaw in country's port system

South-focused shipping creates un-needed costs and delays for UK trade. Northern ports could solve logistics issues but remain under-used despite having modern facilities

November 4 2024, 04:27 PM  •  16 views

UK shipping expert points out major flaw in country's port system

The UKs shipping system has a big problem - its too focused on the south according to David Huck from Peel Ports

Thereʼs a complete obsession with bringing cargo into a particular part of the country and it is strangling UK plc

Peel Ports Chief Operating Officer David Huck stated

The nations top-three container ports (located in south-east England) handle goods that mostly go to far-away customers; which creates un-needed traffic issues. Every-day thousands of trucks and trains move back-and-forth from Felixstowe London and Southampton terminals heading north

The current setup makes shipping more expensive and slow but theres a simple fix: using northern ports. These facilities include:

  • Liverpoolʼs deep-water terminal
  • Hull and Immingham ports
  • Port of Tyne
  • PD Ports Teesport

Liverpool port - which can handle 2m container units yearly - now works at just one-third capacity; even though it has state-of-the-art equipment. The £400m terminal built in 2016 shows how modern northern ports are but they dont get enough use

The south-east ports (run by companies like Hutchison and DP World) handle 90% of container traffic; however 60% of goods end up north of the Severn-Wash line. This creates extra costs and un-needed carbon emissions

Last yearʼs research showed that 76% of retailers would prefer importing through ports closer to their final destinations. MSC - the worlds biggest container company - started direct China-Liverpool routes in Aug-2024; which proves theres market demand for northern shipping

Michael Collins from MSC UK explains: their new route helps clients bring cargo closer to final destinations. The infrastructure exists too - Liverpool has 10 motor-ways within 35 miles; though some rail upgrades are still needed

The governmentʼs response: they dont control where ships go; its up to the market to decide. But they also question how many containers actually stay up north versus going back south through midlands distribution centers