Approaches of the profitability of Arctic shipping in the literature 1
A significant share also analyze costs based on a single transit, which is consistent with the ad hoc service that is taking shape along the Northern Sea Route, but that does not picture adequately a possible regular service that could be set up during a whole shipping season for instance, and that...
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| Other Authors: | , |
| Format: | Book Part |
| Language: | English |
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Routledge
2019
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| Online Access: | https://orca.cardiff.ac.uk/id/eprint/150624/ https://orca.cardiff.ac.uk/id/eprint/150624/3/Theocaris%20chapter%20simul%20shipping%20comm%20FL%20%282%29.pdf |
| Summary: | A significant share also analyze costs based on a single transit, which is consistent with the ad hoc service that is taking shape along the Northern Sea Route, but that does not picture adequately a possible regular service that could be set up during a whole shipping season for instance, and that would imply a loop service. The Arctic area is not considered profitable for container shipping during the winter time, thus the model works with a six-month sailing season. The different starting point thus accounts for a competitive advantage for the Arctic route in this scenario: a shorter route that enables the ship to make more rotations and a better fuel consumption per trip. The literature readily underlines that Arctic routes, being shorter, could imply a significant cost advantage because of a reduced fuel consumption, stemming both from a shorter distance and from a reduced speed. |
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