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Barriers of voyaging on the Northern Sea Route: A perspective from shipping Companies

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  • Lee, Taedong
  • Kim, Hyun Jung

Abstract

Global climate change provides both risks and opportunities in the surrounding areas of the North Pole. Melting icebergs and glaciers increase the environmental risks to the ecosystem. Simultaneously the extraction of natural resources in the region and the use of the Northern Sea Route (NSR) seem easier than before. Those countries and companies that would utilize these opportunities have begun competing to take initiative for the development of the region. For instance, a Korean shipping company operated a test navigation between Russia and Korea through the NSR in 2013, while others did not. What are the drivers and barriers of sailing the NSR? This study aims to address this question by identifying the economic, external, and internal drivers and barriers to voyage through the NSR, from the perspective of shipping companies. Comparative case studies, using interviews and document analysis, suggest that the differences between shipping companies that consider voyaging the NSR mainly lie in companies' perceptions of economic opportunities and their internal factors. Despite economic and external policy barriers, a company's financial capacity and leadership played a key role to explore the new route, seeking potential of shipping resources from the Arctic region.

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  • Lee, Taedong & Kim, Hyun Jung, 2015. "Barriers of voyaging on the Northern Sea Route: A perspective from shipping Companies," Marine Policy, Elsevier, vol. 62(C), pages 264-270.
    • Handle: RePEc:eee:marpol:v:62:y:2015:i:c:p:264-270
    DOI: 10.1016/j.marpol.2015.09.006
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    3. Xueke Li & Amanda H. Lynch, 2023. "New insights into projected Arctic sea road: operational risks, economic values, and policy implications," Climatic Change, Springer, vol. 176(4), pages 1-16, April.
    4. Pierre Cariou & Ali Cheaitou & Olivier Faury & Sadeque Hamdan, 2021. "The feasibility of Arctic container shipping: the economic and environmental impacts of ice thickness," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(4), pages 615-631, December.
    5. 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.
    6. Tuomas Kiiski & Tomi Solakivi & Juuso Töyli & Lauri Ojala, 2018. "Long-term dynamics of shipping and icebreaker capacity along the Northern Sea Route," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 375-399, September.
    7. Zeng, Qingcheng & Lu, Tingyu & Lin, Kun-Chin & Yuen, Kum Fai & Li, Kevin X., 2020. "The competitiveness of Arctic shipping over Suez Canal and China-Europe railway," Transport Policy, Elsevier, vol. 86(C), pages 34-43.
    8. Lasserre, Frédéric & Beveridge, Leah & Fournier, Mélanie & Têtu, Pierre-Louis & Huang, Linyan, 2016. "Polar seaways? Maritime transport in the Arctic: An analysis of shipowners' intentions II," Journal of Transport Geography, Elsevier, vol. 57(C), pages 105-114.
    9. 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.
    10. 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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