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Shipping efficiency comparison between Northern Sea Route and the conventional Asia-Europe shipping route via Suez Canal

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  • Zhang, Yiru
  • Meng, Qiang
  • Ng, Szu Hui

Abstract

The continuous retreat of Arctic sea ice and seemingly appealing cost competitiveness of transarctic shipping routes are expected to boost shipping activities in the region. However, in reality, the number of Arctic transits remains meagre compared with major shipping routes. This study first develops a profit estimation model for containership sailing from an original port to a destination port with multiple port calls and a cost estimation model for oil tanker sailing from an origin port to a destination port. The authors then proceed to compare the shipping efficiency between the Northern Sea Route (NSR) and the Asia-Europe shipping route via Suez Canal by using the developed models and real shipping operational data. The results demonstrate that NSR shipping is not economically favored compared to traditional one in container shipping, but may be only appealing to small or medium-size tanker operators.

Suggested Citation

  • Zhang, Yiru & Meng, Qiang & Ng, Szu Hui, 2016. "Shipping efficiency comparison between Northern Sea Route and the conventional Asia-Europe shipping route via Suez Canal," Journal of Transport Geography, Elsevier, vol. 57(C), pages 241-249.
  • Handle: RePEc:eee:jotrge:v:57:y:2016:i:c:p:241-249
    DOI: 10.1016/j.jtrangeo.2016.09.008
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    References listed on IDEAS

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    Cited by:

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    2. Joseph, Lambert & Giles, Thomas & Nishatabbas, Rehmatulla & Tristan, Smith, 2021. "A techno-economic environmental cost model for Arctic shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 28-51.
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    4. Wang, Hua & Zhang, Yiru & Meng, Qiang, 2018. "How will the opening of the Northern Sea Route influence the Suez Canal Route? An empirical analysis with discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 75-89.
    5. Du, Yuquan & Meng, Qiang & Wang, Shuaian & Kuang, Haibo, 2019. "Two-phase optimal solutions for ship speed and trim optimization over a voyage using voyage report data," Transportation Research Part B: Methodological, Elsevier, vol. 122(C), pages 88-114.
    6. Theocharis, Dimitrios & Rodrigues, Vasco Sanchez & Pettit, Stephen & Haider, Jane, 2019. "Feasibility of the Northern Sea Route: The role of distance, fuel prices, ice breaking fees and ship size for the product tanker market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 111-135.
    7. Zhu, Siying & Jia, Shuai & Sun, Qinghe & Meng, Qiang, 2023. "An empirical study of China–Singapore International Land–Sea Trade Corridor: Analysis from supply and demand sides," Transport Policy, Elsevier, vol. 135(C), pages 1-10.
    8. Koçak, Saim Turgut & Yercan, Funda, 2021. "Comparative cost-effectiveness analysis of Arctic and international shipping routes: A Fuzzy Analytic Hierarchy Process," Transport Policy, Elsevier, vol. 114(C), pages 147-164.
    9. Theocharis, Dimitrios & Pettit, Stephen & Rodrigues, Vasco Sanchez & Haider, Jane, 2018. "Arctic shipping: A systematic literature review of comparative studies," Journal of Transport Geography, Elsevier, vol. 69(C), pages 112-128.
    10. A. D. Volkov & S. V. Tishkov & V. V. Karginova-Gubinova & A. P. Shcherbak, 2021. "Environmental Problems of the Arctic Region: How Do Official Data Correlate to the Population’s Perceptions?," Regional Research of Russia, Springer, vol. 11(1), pages 97-110, December.
    11. Xu, Hua & Yin, Zhifang, 2021. "The optimal icebreaking tariffs and the economic performance of tramp shipping on the Northern Sea Route," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 76-97.
    12. Jingmiao Zhou & Kjetil Fagerholt & Yongjia Liu & Yuzhe Zhao, 2023. "Profitability prospects for container roll-on/roll-off shipping on the Northern Sea Route (NSR)," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(4), pages 778-816, December.
    13. Lin, Dung-Ying & Chang, Yu-Ting, 2018. "Ship routing and freight assignment problem for liner shipping: Application to the Northern Sea Route planning problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 47-70.
    14. D. O. Eliseev & Yu. V. Naumova, 2021. "Simulation of Transit Transportation along the Northern Sea Route under Climate Change," Studies on Russian Economic Development, Springer, vol. 32(2), pages 160-168, March.
    15. Rigot-Müller, Patrick & Cheaitou, Ali & Etienne, Laurent & Faury, Olivier & Fedi, Laurent, 2022. "The role of polarseaworthiness in shipping planning for infrastructure projects in the Arctic: The case of Yamal LNG plant," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 330-353.
    16. Xinjia Gao & Aoshuang Zhu & Qifeng Yu, 2023. "Exploring the Carbon Abatement Strategies in Shipping Using System Dynamics Approach," Sustainability, MDPI, vol. 15(18), pages 1-25, September.
    17. Theocharis, Dimitrios & Rodrigues, Vasco Sanchez & Pettit, Stephen & Haider, Jane, 2021. "Feasibility of the Northern Sea Route for seasonal transit navigation: The role of ship speed on ice and alternative fuel types for the oil product tanker market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 259-283.
    18. Dai, Lei & Jing, Danyue & Hu, Hao & Wang, Zhaojing, 2021. "An environmental and techno-economic analysis of transporting LNG via Arctic route," Transportation Research Part A: Policy and Practice, Elsevier, vol. 146(C), pages 56-71.
    19. Chien-Yun Yuan & Cheng-Hsien Hsieh & Dong-Taur Su, 2020. "Effects of new shipping routes on the operational resilience of container lines: potential impacts of the Arctic Sea Route and the Kra Canal on the Europe-Far East seaborne trades," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(2), pages 308-325, June.
    20. Wang, Yangjun & Liu, Kefeng & Zhang, Ren & Qian, Longxia & Shan, Yulong, 2021. "Feasibility of the Northeast Passage: The role of vessel speed, route planning, and icebreaking assistance determined by sea-ice conditions for the container shipping market during 2020–2030," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    21. Sibul, Gleb & Jin, Jian Gang, 2021. "Evaluating the feasibility of combined use of the Northern Sea Route and the Suez Canal Route considering ice parameters," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 350-369.

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