Arctic Sea Routes of Limited Use to China

By Eric Haun
Wednesday, November 13, 2013
Photo: The Arctic Institute

As China’s international trade remains seemingly ever-growing, the country continues to seek diversified options for expanding its global trade. The prospect of Arctic shipping passages have generated much discussion throughout the industry, especially as weather trends seem to implicate a potentially vast opening of passable routes, most specifically for China in the Northern Sea Route.

Executive Director of The Arctic Institute, Malte Humpert, conducted a study, “The Future of Arctic Shipping: A New Silk Road for China?” that explores global trade patterns, technology and infrastructure trends, and the implications Arctic shipping developments for China, and ultimately decides the region’s importance for China will be limited.

"The geographic distribution of China’s main trade partners and its substantial investments in port infrastructure along the existing trade routes do not support the idea of large-scale trans-Arctic shipping," Humpert said. "A closer look at the geographic distribution of China’s exports and imports reveals the impossibility of large-scale trans-Arctic shipping. Most of China's main trade partners are far removed from Arctic shipping routes. Trade with Northern Europe, the region most relevant to Arctic shipping, accounts for just 2.9%."

Humpert continued, "Over the next two decades Chinese trade within the Asia-Pacific region and with countries in the southern hemisphere will experience the sharpest growth. The importance of Europe as one of China’s major trading partners, on the other hand, will decline over the coming decades, reducing the likelihood of significant levels of trade between the two regions conducted via the Arctic."

“A new generation of ultra-large container ships and bulk carriers will offer vastly improved economies of scale and reduce costs to the point where Arctic shipping will not be economically viable even under ideal conditions," Humpert said.

According to Humpert, the Arctic is essentially incapable of competing with the already well established global sea routes. He said, "Future shipping in the Polar region will mostly consist of seasonal destinational transport, delivering supplies into the Arctic for its increasing economic activity and transporting the region’s natural resources to markets in East Asia."
 

  • Malte Humpert, Executive Director of The Arctic Institute

    Malte Humpert, Executive Director of The Arctic Institute

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

POSH Bags Shell FLNG Contract

Singapore’s offshore marine services provider PACC Offshore Services Holdings Ltd. (POSH) has been awarded a contract to support Shell’s Prelude floating liquefied

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

Subsea 7 Announces PLSV Swap off Brazil

Subsea 7 S.A. said it has reached an agreement with Petrobras to substitute a pipelay support vessel (PLSV) working off Brazil.   The agreement will see the Subsea-7-owned

Environmental

MISC Publishes its 2015 Sustainability Report

MISC Berhad (MISC) today announces the publication of its 2015 Sustainability Report, covering the Company’s commitment, strategy and performance for the year ended

Admiral of the Ocean Sea Award Recipients Named

The United Seamen's Service (USS) 2016 Admiral of the Ocean Sea Awards (AOTOS) will be presented to Arthur E. Imperatore, Founder and President of New York Waterways; Donald Marcus,

Orca Energy ESS to Power Fish Farm Support Vessel

Grovfjord Mek. Verksted AS (GMV) has selected Corvus Energy as the supplier of the lithium ion based energy storage system (ESS) for a fish farm support vessel called GMV ZERO.

News

World Trade Routes Won't be the Same with Expanded Panama Canal!

On 26th June 2016, a landmark development for the shipping industry will occur with the opening of the new third set of locks at the Panama Canal. Clarksons Research takes a look.

Brexit: What Next for Shipping Markets?

For many in shipping, the Brexit was unexpected. Many believe that Brexit’s impact on the shipping industry will be more or less neutral.   The UK Chamber of

Denmark Adopts Digital Ship Certification

As of June 24, 2016, ships flying the Danish flag are being digitally certified, making Denmark one of the first countries to put an end to the 100-year-old tradition

Arctic Operations

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

Ocean Cleanup Prototype Set for a Test Run

The first ocean cleanup system ever tested at sea will soon be deployed for trials 23 kilometers (12 NM) off the Dutch coast. The goal of the test is to see how

Amid Melting Arctic Ice, Kerry sees Looming Climate Catastrophe

Standing near Greenland's Jakobshavn glacier, the reputed source of the iceberg that sank the Titanic over a century ago, U.S Secretary of State John Kerry saw evidence of another looming catastrophe.

Logistics

Maersk Takes Coffee Very Seriously

Maersk acknowledges that coffee is very special, mainly in regards to the processes and requirements involved for it’s shipping. "So we have adapted the way we work so we can meet your needs,

World Trade Routes Won't be the Same with Expanded Panama Canal!

On 26th June 2016, a landmark development for the shipping industry will occur with the opening of the new third set of locks at the Panama Canal. Clarksons Research takes a look.

CMA CGM to use Kingston As Transshipment Hub

French shipping giant CMA CGM plans to use Kingston Container Terminal,  Jamaica as a strategic Caribbean transshipment hub for an enlarged Panama Canal. The Port connects to US East Coast,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1443 sec (7 req/sec)