Key criteria influencing the choice of Arctic shipping: a fuzzy analytic hierarchy process model

• Main Authors: Po-Hsing Tseng, Kevin Cullinane
• Format: Article in Journal/Newspaper
• Language: unknown
• Subjects: Arctic; Northwest Passage; Global warming; Northern Sea Route; Northwest passage; Sea ice
• Online Access: http://hdl.handle.net/10.1080/03088839.2018.1443225

As Arctic sea ice shrinks due to global warming, the Northern Sea Route (NSR) and the Northwest Passage (NWP) offer a substantial reduction in shipping distance between Asia and the European and North American continents, respectively, when compared to conventional routes through the Suez and Panama Canals. However, Arctic shipping routes have many problems associated with their use. The main objective of this paper is to identify the key criteria that influence the decisions of shipping operators with respect to using Arctic shipping routes. A multi-criteria decision-making methodology, the Fuzzy Analytic Hierarchy Process, is applied to rank four potential categories of criteria (‘economic’, ‘technical’, ‘political’ and ‘safety’ factors) and their sub-criteria.The results of the analysis suggest that, on aggregate, ‘economic’ is the most important category of influential factors, followed by ‘safety’, ‘technical’ and ‘political’ factors. The paper concludes, however, that the most influential specific sub-criteria relate to risks that lie mainly within the ‘safety’ and ‘political’ domains and that, especially in combination, these overwhelm the importance which is attached to ‘economic’ factors such as reduced fuel use. Finally, the implications of these findings for the future development of Arctic shipping are addressed at a strategic level.