Polar Silk Road will reshape trade and geopolitics

2018 ◽  
Keyword(s):  
Climate Change ◽  
Natural Resources ◽  
Silk Road ◽  
The Arctic ◽  
Economic Viability ◽  
Global Supply Chains ◽  
Northern Coast ◽  
Content Type ◽  
Northern Sea Route ◽  
Strait Of Malacca

Subject Shipping in the Arctic between China and Europe. Significance Climate change is leaving Arctic waters navigable for longer periods, opening a new shipping route from East Asia to Europe along Russia's northern coast. Dubbed the ‘Polar Silk Road’ (PSR) in China and 'Northern Sea Route' (NSR) in Russia, it could eventually become an alternative to the main Strait of Malacca and Suez Canal route, altering global supply chains and geopolitics. Impacts The PSR's economic viability is premised on it being a reliable and safe route; that time is still far off. Melting ice will unlock new natural resources and commercial opportunities. The foremost use of the PSR initially will probably be for shipping resources extracted from the Arctic to markets elsewhere.

Profitability of the Northern Sea Route for liquid bulk shipping under post 2020 sulphur regulations

2020 ◽  
Vol 31 (2) ◽  
pp. 313-332
Author(s):  
Tuomo Keltto ◽  
Su-Han Woo
Keyword(s):  
Spot Market ◽  
The Arctic ◽  
Future Research ◽  
Estimation Model ◽  
Content Type ◽  
Freight Rates ◽  
Northern Sea Route ◽  
Financial Perspective ◽  
The Baltic ◽  
Regulation Compliance

PurposeThe purpose of this study is to evaluate the profitability of the Northern Sea Route (NSR) as a shipping lane from the financial perspective of shipping companies under post 2020 sulphur regulations.Design/methodology/approachThis study develops profit estimation model, and the profitability of the NSR is assessed for a Handymax Medium Range (MR) tanker vessel using scenarios in combination with spot market earning levels, the regulation compliance method and destination ports. The required freight rates are calculated to justify the decision of shipowners to transit a tanker from the Baltic spot market to the NSR navigation.FindingsResults suggest that the required freight rates from the Arctic trade to justify the transit to the NSR are higher than the actual agreed rates in the past, which implies low viability of the NSR as a regular shipping lane. It was also found that the required freight rates are affected by the spot market earning levels, compliance method and duration of the voyage.Research limitations/implicationsThis study takes a new approach on assessing the NSR viability by comprehensively assessing the annual profitability and including the spot market trade as an opportunity cost for the NSR shipping. Despite various scenarios used in this study, a sensitivity analysis would be useful for future research.Practical implicationsThis study suggests how much freight rates a shipping company would need to charge if it were to offer tanker shipping services to four major Asian ports while simultaneously operating at the Baltic Sea during the remainder of the year.Originality/valueThis study adopts a market-oriented approach by incorporating both earnings and costs (including opportunity costs) in the profitability model rather than merely analyzing the total cost of shipping via the NSR. This study also analyzes impact of IMO 2020 Sulphur regulation on the NSR profitability.

scholarly journals Development of Northern Sea Route: Prospects for International Cooperation

2021 ◽  
Vol 1 (1) ◽  
pp. 67-77
Author(s):  
A. V. Kirgizov-Barskii
Keyword(s):  
Global Climate Change ◽  
Swot Analysis ◽  
Global Climate ◽  
Water Area ◽  
The Arctic ◽  
Northern Coast ◽  
Arctic Zone ◽  
Northern Sea Route ◽  
Transportation Route ◽  
Modern Technologies

Today due to global climate change the Northern Sea Route is being formed along the northern coast of Russia as a new international maritime passage in the Arctic. Due to the rapid increase in the interest of regional and non-Arctic states, the scientific community and business to this transportation route, there is a need to study the prospects for cooperation between Russia and other countries on the development of the Northern Sea Route. The paper provides a detailed analysis of the interests of external players in the NSR area, taking into account the latest changes and events, while the author uses swot-analysis and a comparative analytical approach to conduct the study. The results of the study have shown that cooperation with some Arctic countries on the development of the NSR could bring mutual benefits: Canada and Russia would exchange experience on the development of similar sea routes, and Norway and Iceland would receive advantages as hubs on new routes. Non-regional countries, such as China, South Korea, Japan, Singapore and India, are interested in the NSR. For them, the Northern Sea Route is potentially shorter and safer compared to traditional routes, and it also allows to participate in projects located near its water area in science, energy and transport sectors. In turn, the participation of foreign partners is important for Russia, since it is usually accompanied by the active use of the route, the creation of large projects throughout its entire length, the attraction of serious funds, modern technologies and knowledge to the Arctic zone of the country.

Moscow will press Arctic claims with law and military

2017 ◽  
Keyword(s):  
The Arctic ◽  
Competitive Environment ◽  
Resource Base ◽  
Content Type ◽  
Technology Transfers ◽  
Northern Sea Route ◽  
Military Presence ◽  
Territorial Claim ◽  
Defence Sector ◽  
Russian Military

Subject Russia's Arctic strategy. Significance Russia has identified the Arctic as a strategic priority and future resource base, and is working systematically to expand its territorial claim and consolidate control of the Northern Sea Route (NSR). While it seeks cooperation with like-minded Arctic states, it is upgrading its military capacity to defend its interests in what it sees as an increasingly competitive environment as outside players try to make inroads. Impacts NATO states will respond to Moscow's growing military presence by upgrading their Arctic capacity. Russian military expansion will be constrained by procurement delays affecting the defence sector generally. A relaxation in US sanctions would facilitate technology transfers for developing Arctic hydrocarbons deposits.

Sea route and energy are key to Russia's Arctic vision

2019 ◽  
Keyword(s):  
Climate Change ◽  
Power Plant ◽  
Nuclear Power ◽  
Liquefied Natural Gas ◽  
The Arctic ◽  
Russian Arctic ◽  
Remote Communities ◽  
National Interests ◽  
Content Type ◽  
And Control

Subject Russian Arctic update. Significance Russia has identified two key national interests in the Arctic, hydrocarbons development and control over sea routes, and has worked consistently to advance them. Often seen as aggressive by NATO states, Russian efforts to rebuild military capabilities after decades of underfunding are in large part designed to consolidate Moscow's claim to exercise jurisdiction over its Arctic waterway and increase exports of liquefied natural gas (LNG), oil and coal along it. Impacts Russia's new floating nuclear power plant is the first in a series designed to assist remote communities and extractive projects. Warships are being used to stop and inspect small boats in a sign of Moscow's assertion of its claim to control its waters. Russia is part of the MOSAiC project to study the central Arctic and gain insights on climate change.

Russia will lag on climate action despite policy shift

2019 ◽  
Keyword(s):  
Climate Change ◽  
Climate Change Policy ◽  
The Arctic ◽  
High Tech ◽  
Russian Government ◽  
Content Type ◽  
Change Policy ◽  
Climate Action ◽  
Policy Shift ◽  
International Climate

Subject Climate change policy views in Russia. Significance After years of delay, the Russian government has acceded to the Paris Agreement to limit global warming. This is a positive step, although the decision is more symbolism than substance. Moscow's obligations under the agreement are very limited and powerful domestic interests are obstructing implementation of a more active climate policy. Impacts Due to warming in the Arctic, Russia plans to increase cargo traffic along its Arctic maritime route to 80 million tonnes per year by 2024. As Russia promotes itself as an international climate leader, state-owned Rusnano is promoting high-tech solutions to emissions reductions. Objections to radical policy change will not be couched in the language of climate change denial.

scholarly journals Ten Years of International Shipping on the Northern Sea Route: Trends and Challenges

2021 ◽  
Vol 12 (0) ◽  
pp. 4
Author(s):  
Björn Gunnarsson ◽  
Arild Moe
Keyword(s):  
International Market ◽  
The Arctic ◽  
Current Phase ◽  
Northern Coast ◽  
Shipping Industry ◽  
International Shipping ◽  
Northern Sea Route ◽  
The Pacific ◽  
Environmentally Sound ◽  
Arctic Russia

Analysis of detailed statistics shows remarkable fluctuations in the volume and composition of voyages on the Northern Sea Route (NSR) along the northern coast of Russia since international use began in 2010. There has been strong growth in destination shipping between the Arctic and ports outside the region, but transit shipping between the Pacific and the Atlantic has not experienced the growth many had anticipated. Explanations are found in international market conditions as well as in the management of the NSR, with important lessons for the future development of different shipping segments. Shipping companies from several countries took part in the period up to 2019, but they seem to have become less central in the current phase of NSR shipping, which is dominated by the transport of hydrocarbons out of the Arctic. Russia expects international transit to pick up later. However, Russia alone cannot determine the volume of international traffic: it is the international shipping industry that will assess the balance of factors and conditions, and conclude if and when the shorter Arctic routes are safe, efficient, reliable, environmentally sound and economically viable in comparison with other routes.

US engagement in Greenland will intensify

2020 ◽  
Keyword(s):  
Climate Change ◽  
Economic Development ◽  
Rare Earth ◽  
Rare Earth Elements ◽  
Natural Resources ◽  
Foreign Investment ◽  
Tourist Destination ◽  
Content Type ◽  
Strategic Location ◽  
Economic Engagement

Significance Attention is returning to Greenland’s natural resources -- especially rare-earth elements (REEs) -- and its strategic location, something China and Russia also recognise. Washington in April gave a USD12.1mn aid package to Greenland, supporting economic development through mining, education and tourism. Impacts China will continue investing in Greenland’s REE reserves, straining US-China relations. Nuuk will use US investment as leverage for greater Danish political and economic engagement. Foreign investment and diplomatic engagement will embolden Greenland as a distinct political entity. Climate change will increase Greenland’s viability as tourist destination.

THE ROLE OF THE NORTHERN SEA ROUTE AS A FACTOR OF NATIONAL SECURITY

2020 ◽  
Author(s):  
Елена Сергеевна Копкова ◽  
Сергей Николаевич Трушин
Keyword(s):  
Natural Resources ◽  
National Security ◽  
International Cooperation ◽  
The Arctic ◽  
Area Of Interest ◽  
Northern Sea Route

Северный морской путь (СМП) становится все более актуальной сферой интересом для многих стран. Большая часть арктических территорий принадлежит России. Это стратегические запасы природных ресурсов, а также водные акватории, транспортная артерия - СМП. Развитие СМП, а также международное сотрудничество в области его использования является вопросом национальной безопасности. The Northern sea route (NSR) is becoming an increasingly relevant area of interest for many countries. Most of the Arctic territories belong to Russia. These are strategic reserves of natural resources, as well as water areas, and the transport artery - the NSR. The development of the NSR, as well as international cooperation in its use, is a matter of national security.

scholarly journals Ethical Challenges Facing Greenland in the Present Era of Globalization: Towards Global Responsibility

2013 ◽  
Vol 8 (2) ◽  
Author(s):  
Jacob Dahl Rendtorff
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Natural Resources ◽  
Arctic Region ◽  
The Arctic ◽  
Ethical Challenges ◽  
Political Responsibility ◽  
Global Ethics ◽  
Global Responsibility ◽  
The Arctic Region

Recently, the developments of ethics and politics in the Arctic region have again become an issue for international discussion. One main issue is the problem of climate change and sustainability of the Arctic region. This problem is linked to the issue of exploitation of natural resources in the Arctic region, not at least in Greenland. Indeed, the general issue is how we should define ethics of the environment and sustainability as a general principle for the Arctic region. It is important to discuss what is at stake and how we define the problem in relation to the different participating stakeholders. This paper deals with these problems as a case for global ethics and it proposes a vision of ethical and political responsibility for sustainable development in order to deal with such problems.

scholarly journals Arctic Frontier: Ice Silk Road and Its Role in China's Advance to the Arctic

2021 ◽  
pp. 128-143
Author(s):  
Elena G. USHAKOVA ◽  
Keyword(s):  
Arctic Region ◽  
White Paper ◽  
Silk Road ◽  
Direct Access ◽  
The Arctic ◽  
Arctic Zone ◽  
Advantages And Disadvantages ◽  
Northern Sea Route ◽  
Legal Position ◽  
Arctic Policy

In recent circumstances of world climate change, Arctic zone has become of great interest for those countries actively involved in its development. With the constant climate warming, deglaciation and increasing of sea-level, commercial transport ways through the Arctic Ocean become a possible economic solution for large exporting countries. Due to importance of north passage for China, Beijing proclaimed itself as a "near-circle State" to get advantages from the development of Northern Sea Route (NSR) that can provide direct access to the Arctic zone and its natural resources. Considering this, China has recently published its White Paper on Arctic Policy, where it announces "Ice Silk Road" to be the official Arctic strategy of China. This article underlines the major intentions and interests of China in its Arctic strategy. One of China's intentions is an enhancement of the Northern Sea Route, that still raises concerns from the specialists whether it can be applicable part of Arctic strategy of China. This article approves that according to Ice Silk Road's connotation Russia should play an indispensable role in China's advancement to the Arctic zone through NSR. Moreover, the author investigates the influence of "Ice Silk Road" on Sino-Russian relations. Both China and Russia appear to prioritize this strategy to ameliorate economic situation and infrastructure in less-developed regions of two countries. Though, economic development of Arctic coastal cities is one of the priorities of the Russian Federation, it remains to be attentive to the involvement of China in the development of the region, mainly out of fear that it will influence its legal position in the Arctic region. Meanwhile, it stays important that two governments come to a consensus concerning the legislative basis of NSR usage and have a deep assessment of advantages and disadvantages that come out as a result of their partnership.

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