October 17
MSC Rules Out Using the Northern Sea Route
MSC Mediterranean Shipping Company is joining a growing list of carriers that have pledged not to use the Northern Sea Route for shipping between Europe and Asia.And a deep dive from Bloomberg via gCaptain October 21:
MSC said in a statement Thursday that its decision is based on environmental concerns, adding that it will instead focus on improving environmental performance on existing global trade routes.
“As a responsible company with a longstanding nautical heritage and passion for the sea, MSC finds the disappearance of Arctic ice to be profoundly disturbing. Every drop in the oceans is precious and our industry should focus its efforts on limiting environmental emissions and protecting the marine environment across existing trade routes,” said Diego Aponte, President & CEO, MSC Group....MORE
Russia Willing to Pay to Lure Shippers to the Arctic
Russia wants to make its Arctic waters more attractive to shippers than the Suez Canal and could be willing to compensate for potential risks to make that happen.....MUCH MORE
President Vladimir Putin has made development of the Arctic one of Russia’s top long-term priorities and huge projects to export liquefied natural gas via the Northern Sea Route have already lured investors above the Polar Circle. But shippers of other products remain reluctant to make the detour from the Suez Canal toward the Arctic due to multiple risks.
To deliver a cargo via the Northern Sea Route today, a shipping company needs an ice-class vessel or an icebreaker and to pay insurance costs more than twice those for the Suez Canal, according to Russia’s Deputy Minister of the Far East and Arctic Development Alexander Krutikov.
His ministry, together with Russian think-tank Skolkovo, is working on a project to create a state-run container ship operator. The company would cover the cost of any risks associated with transporting international cargoes via the Arctic’s icy waters, including possible delivery disruptions and higher insurance payments.
“The state pays for the Arctic exposure and the shippers cover the remaining costs themselves,” Krutikov said in an interview. The resulting costs for shipping companies “should be lower than in the Suez Canal, at least at the first stage,” to promote the route.
If the idea is implemented, the state container ship operator would be responsible for transporting cargoes across the Northern Sea Route, stretching more than 3,000 nautical miles between the Barents Sea at the Russian border with Norway and the Bering Strait near Alaska.
Feeder ships from European and Asian ports could sail as far as Murmansk in the Barents Sea and Kamchatka in the Far East, bringing cargoes to transshipment points, according to Krutikov. From there, the Russian container operator would take responsibility for the cargoes, he said. “This significantly lowers transportation costs, as foreign companies will not need Arctic vessels,” and Russia could also keep transshipment costs competitive, Krutikov added....
Related:
August 24
"Macron Asks Shippers to Shun Arctic Route to Protect Environment" CMA CGM Says 'Oui'
May 2019
It's The Middle Of May, So Why Is This Arctic Class LNG Tanker Using The Suez Canal Instead Of The Northern Sea Route?
September 2019
Shipping: Egypt (Suez Canal) Is A Bit Nervous About Russia's Northern Sea Route
Following on this morning's post, "Shipping: Venta Maersk Successfully Transits Russia's Northern Sea Route Becoming The First Container Ship To Do So", here's a story we've been waiting to link, from Egypt Today:
CAIRO – 29 August 2018: Although Maersk will be sending its Venta Maersk vessel to collect data from the Arctic sea route in the next few days, research has shown that the Suez Canal Route is more cost effective and will remain unaffected....And another on Maersk and the NSR:
Shipping: "Venta Maersk Completes Northern Sea Route Trial Passage"
