Study on Economic Evaluation of the Northern Sea Route: Taking the Voyage of Yong Sheng as an Example

Abstract

Global warming and the retreat of the ice cover in the Arctic region have made it possible to navigate by the Northern Sea Route (NSR), a new passage in the international shipping network that will change the maritime industry. However, few commercial vessels use the NSR because of the variability in ice conditions and the uncertain economic feasibility. To evaluate the potential and feasibility of the NSR, this paper presents an account of a real voyage of the vessel Yong Sheng, which passed through the NSR in 2013. The navigation conditions, administration, and icebreaker escorting service of the route are analyzed. The voyage of the Yong Sheng is then evaluated and compared with the conventional Suez Canal Route for cost and environmental benefits. It is concluded that both the total cost and the carbon emissions of a single voyage are reduced by use of the NSR. Although the limited navigable time and uncertain conditions may undermine the advantage of the NSR, it is reasonable to consider the NSR as an alternative route to save navigation time and cost. The primary conclusion of this paper can help ship owners or operators to determine strategies for NSR service.