Relevance of the Northern Sea Route (NSR) for bulk shipping
Some scholars consider that today’s market conditions are in favor of the Northern Sea Route (NSR) rather than the Suez Canal Route (SCR). However, the number of bulk carriers using the NSR remains extremely limited, despite higher fuel prices since 2009 and subsequent significant fuel savings. In 2...
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Online Access: | http://www.sciencedirect.com/science/article/pii/S0965856415001561 |
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ftrepec:oai:RePEc:eee:transa:v:78:y:2015:i:c:p:337-346 2024-04-14T08:07:53+00:00 Relevance of the Northern Sea Route (NSR) for bulk shipping Pierre, Cariou Olivier, Faury http://www.sciencedirect.com/science/article/pii/S0965856415001561 unknown http://www.sciencedirect.com/science/article/pii/S0965856415001561 article ftrepec 2024-03-19T10:32:16Z Some scholars consider that today’s market conditions are in favor of the Northern Sea Route (NSR) rather than the Suez Canal Route (SCR). However, the number of bulk carriers using the NSR remains extremely limited, despite higher fuel prices since 2009 and subsequent significant fuel savings. In 2013, there were 53 transits via the Arctic, out of which 27 by oil tankers and 6 by bulk carriers. In this article we show that this result might be attributable to a factor, which is not considered in most studies: the spot freight rate to fuel ratio which governs ship owners’ decisions regarding the sailing speed. Due to a low ratio since 2011, the speed of vessels on the SCR is at its lowest level, and potential NSR fuel savings are too limited to provide a viable alternative. We further argue that, contrary to most studies, internalizing NSR environmental benefits marginally improves the attractiveness of the NSR. Maritime transport; Northern Sea Route; Bulk shipping; Profit; Optimal sailing speed; Article in Journal/Newspaper Arctic Northern Sea Route RePEc (Research Papers in Economics) Arctic |
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Open Polar |
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RePEc (Research Papers in Economics) |
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ftrepec |
language |
unknown |
description |
Some scholars consider that today’s market conditions are in favor of the Northern Sea Route (NSR) rather than the Suez Canal Route (SCR). However, the number of bulk carriers using the NSR remains extremely limited, despite higher fuel prices since 2009 and subsequent significant fuel savings. In 2013, there were 53 transits via the Arctic, out of which 27 by oil tankers and 6 by bulk carriers. In this article we show that this result might be attributable to a factor, which is not considered in most studies: the spot freight rate to fuel ratio which governs ship owners’ decisions regarding the sailing speed. Due to a low ratio since 2011, the speed of vessels on the SCR is at its lowest level, and potential NSR fuel savings are too limited to provide a viable alternative. We further argue that, contrary to most studies, internalizing NSR environmental benefits marginally improves the attractiveness of the NSR. Maritime transport; Northern Sea Route; Bulk shipping; Profit; Optimal sailing speed; |
format |
Article in Journal/Newspaper |
author |
Pierre, Cariou Olivier, Faury |
spellingShingle |
Pierre, Cariou Olivier, Faury Relevance of the Northern Sea Route (NSR) for bulk shipping |
author_facet |
Pierre, Cariou Olivier, Faury |
author_sort |
Pierre, Cariou |
title |
Relevance of the Northern Sea Route (NSR) for bulk shipping |
title_short |
Relevance of the Northern Sea Route (NSR) for bulk shipping |
title_full |
Relevance of the Northern Sea Route (NSR) for bulk shipping |
title_fullStr |
Relevance of the Northern Sea Route (NSR) for bulk shipping |
title_full_unstemmed |
Relevance of the Northern Sea Route (NSR) for bulk shipping |
title_sort |
relevance of the northern sea route (nsr) for bulk shipping |
url |
http://www.sciencedirect.com/science/article/pii/S0965856415001561 |
geographic |
Arctic |
geographic_facet |
Arctic |
genre |
Arctic Northern Sea Route |
genre_facet |
Arctic Northern Sea Route |
op_relation |
http://www.sciencedirect.com/science/article/pii/S0965856415001561 |
_version_ |
1796305299294912512 |