| Summary: | The Arctic is melting at an unprecedented rate which might, in the not so distance future, open up the Northern Sea Route, shortening the distance between East Asia and Europe a great deal (approximately 40%) and making the exploration of natural minerals in the Arctic feasible. This thesis takes a look at what might happen if Iceland can take advantage of its strategic location in the North-Atlantic, at the end of the NSR, to become a transshipment port for ongoing cargo destined for North-America and Europe, or even yet a base for Arctic exploration and processing of natural minerals like oil and gas. By examining the technological aspects of NSR navigation, present state of sea-transportations, and how the development of transshipment ports and vessel sizes has changed the landscape of international logistics. With this information, I will try to evaluate if it is economically feasible to use the NSR as an international cargo gateway, and if Iceland has what it takes to become a hub for cargo transshipments. Although shipping through the Suez Canal is still by far the least expensive option, the NSR offers a great potential to become a realistic alternative; however, the potentials for Iceland are less than desirable at the moment in regards to a transshipment port, but are more realistic in the field of processing natural resources.
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