Feasibility of the Northern Sea Route for oil shipping from the economic and environmental perspective and its influence on China’s oil imports
The Northern Sea Route (NSR) has the potential to become a key oil shipping route due to its shorter distance and abundant oil resources in the Arctic. This paper puts forward a model to calculate the Required Freight Rate of the NSR and China’s other oil import shipping routes, which includes both...
| Published in: | Marine Policy |
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| Main Authors: | , , , , , |
| Format: | Article in Journal/Newspaper |
| Language: | English |
| Published: |
2020
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| Subjects: | |
| Online Access: | https://eprints.soton.ac.uk/440802/ https://eprints.soton.ac.uk/440802/1/Feasibility_of_the_Northern_Sea_Route_for_oil_shipping_.docx https://eprints.soton.ac.uk/440802/2/Wang_et_al._2020_Figures.docx https://eprints.soton.ac.uk/440802/3/Wang_et_al._2020_Tables.docx |
| Summary: | The Northern Sea Route (NSR) has the potential to become a key oil shipping route due to its shorter distance and abundant oil resources in the Arctic. This paper puts forward a model to calculate the Required Freight Rate of the NSR and China’s other oil import shipping routes, which includes both the shipping cost and the environmental cost. The calculation is undertaken in the context of IMO Sulfur 2020 limit, and the Very Low Sulfur Fuel oil (VLSFO) is chosen as marine oil. The vessel speed in this study varies with ice thickness in different route segments; the environmental cost in the model has considered emissions from all main air pollutants in addition to CO2. The results show that the NSR has the potential to carry some of China’s oil import volume; internalizing the environmental cost has improved the competitiveness of NSR; ice breaking fee and VLSFO price have a significant influence on the attractiveness of NSR, but the price (tax) of CO2 has no obvious impact. |
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