Economic Possibilities of Shipping though Northern Sea Route1

Global warming and climate change haves brought a new issue in the Arctic sea. Therefore, we can now explore new shipping routes through the Arctic Ocean instead of the existing commercial route. In particular, the Northern Sea Route (NSR) is one of the feasible shipping routes and, has provided tre...

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Bibliographic Details
Published in:The Asian Journal of Shipping and Logistics
Main Authors: Sung-Woo Lee, Ju-Mi Song
Format: Article in Journal/Newspaper
Language:English
Published: Elsevier 2014
Subjects:
Northern Sea Route
Arctic Sea
O/D Analysis
SP Survey
Shipment of goods. Delivery of goods
HF5761-5780
Arctic
Arctic Ocean
Pacific
Climate change
Global warming
Online Access:https://doi.org/10.1016/j.ajsl.2014.12.009
https://doaj.org/article/1dab74c2d59c46c6adeed7c44b08940f
Description
Summary:Global warming and climate change haves brought a new issue in the Arctic sea. Therefore, we can now explore new shipping routes through the Arctic Ocean instead of the existing commercial route. In particular, the Northern Sea Route (NSR) is one of the feasible shipping routes and, has provided tremendous shipping benefits. If the NSR becomes commercialized, we will be able to save about 5,000 nautical miles in distance and sailing time. In this study, we will emphasize some of the important results on the possibility of commercializing the shipping route in the Arctic. The NSR may bring positive economic effects in terms of shipping distance and time. For example, when utilizing the NSR, the maximum cargo traffic between Asia and Europe is expected to be around 46 million TEU. However, we also need to consider an expensive passage fee that is currently imposed by Russia. In conclusion, we maintain our efforts to protect the environment in the Arctic, in terms of logistics, and we need to explore every possible avenue to bring possible economic benefits to the North Pacific countries.

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