UK Ports Reject ETS Avoidance Claims as Traffic Soars

The British Ports Association (BPA) has challenged the European Union's assertion that rising container traffic to UK ports is driven by shipping lines seeking to evade EU carbon pricing. This rebuttal, based on the BPA's analysis published on 15 October 2026, argues that new capacity and commercial competitiveness, rather than efforts to avoid EU Emissions Trading System (ETS) charges, are the key factors behind the surge in UK container activity.

Investment and Growth

The BPA’s report, which was published on 15 October 2026, highlights the significant investment made in UK ports, particularly at London Gateway. The report states that the opening of DP World’s £350 million fourth berth at London Gateway in late 2024 has played a crucial role in driving container traffic growth. This expansion boosted capacity by more than a third, and in 2025, London Gateway handled more than 3 million twenty-foot equivalent units (TEUs), a 52% increase from the previous year. According to Ports Europe, this growth is concentrated in London, accounting for approximately 500,000 of the additional 600,000 TEUs handled by UK ports in 2025.

Network Changes and Competitiveness

The BPA further asserts that changes in liner networks and commercial competition, rather than the EU ETS, are the primary drivers of increased container traffic. The association points to the arrival of Asia-Europe services operated by Maersk and Hapag-Lloyd’s Gemini Cooperation in February 2025 as a key factor in the growth at London Gateway. These network changes have also reshaped the UK's container market, with Maersk’s departure from Felixstowe contributing to a shift towards other ports.

EU ETS Observatory and EU Proposals

The EU ETS Observatory, developed by Spain’s state-owned ports administrator Puertos del Estado, initially proposed linking the rise in UK container traffic to carbon leakage from the EU ETS. In July 2026, the EU ETS Observatory recommended designating Felixstowe, London, and Southampton as “neighbouring container transhipment ports,” arguing that shippers were rerouting cargo to avoid ETS scheme charges. However, the BPA’s analysis challenges these findings, arguing that commercial factors and port infrastructure investment are more credible explanations for the observed traffic patterns.

Future Investments and Expansion

DP World’s expansion plans for London Gateway, which include adding two all-electric berths and a second rail terminal at a cost of £1 billion, further underscores the focus on competitiveness and capacity enhancement rather than ETS avoidance. This investment, according to Splash 247, is expected to significantly boost the port’s capacity and operational efficiency, making it a more attractive option for shipping lines.

What this means for operators: The BPA’s analysis and advocacy suggest that the UK ports’ growth is driven by substantial investments and commercial opportunities rather than efforts to evade carbon pricing. This perspective is likely to influence ongoing discussions around EU proposals aimed at mitigating perceived carbon leakage to the UK. Operators should anticipate continued scrutiny and potential regulatory changes as the EU seeks to address perceived carbon evasion, but the BPA’s stance provides a strong counter-argument based on concrete evidence of port infrastructure development and market competitiveness.