Feeder operators targeting perishables are 'cashing in' on Red Sea crisis
Indian reefer cargo stakeholders are “cherry-picking” ocean services going via the Red Sea, instead of ...
FDX: ABOUT USPS PRIVATISATIONFDX: CCO VIEWFDX: LOWER GUIDANCE FDX: DISRUPTING AIR FREIGHTFDX: FOCUS ON KEY VERTICALFDX: LTL OUTLOOKGXO: NEW LOW LINE: NEW LOW FDX: INDUSTRIAL WOESFDX: HEALTH CHECKFDX: TRADING UPDATEWMT: GREEN WOESFDX: FREIGHT BREAK-UPFDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK
FDX: ABOUT USPS PRIVATISATIONFDX: CCO VIEWFDX: LOWER GUIDANCE FDX: DISRUPTING AIR FREIGHTFDX: FOCUS ON KEY VERTICALFDX: LTL OUTLOOKGXO: NEW LOW LINE: NEW LOW FDX: INDUSTRIAL WOESFDX: HEALTH CHECKFDX: TRADING UPDATEWMT: GREEN WOESFDX: FREIGHT BREAK-UPFDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK
Chinese general cargo vessels have found a novel way around the problems in the Red Sea – sailing via the Arctic Northern Sea Route (NSR).
New New Shipping’s Xin Xin Hai 1 and Xin Xin Hai have embarked on a journey that will take them through the thawing NSR, navigable with icebreaker assistance during the summer months.
But scientists say climate change and melting ice sheets will soon make it possible to use the passage all year – going from China to Northern Europe on a voyage of around 13,000km, a substantial reduction on the 20,000km Suez Canal route, and around half of the distance needed to divert around the Cape of Good Hope.
The shorter distance would likely give shipping lines the opportunity to compete with faster transport modes.
However, this does not mean trouble-free Arctic navigation for most container vessels.
To be used in the region, vessels will need ice-strengthened hulls, because even using the channel behind an icebreaker requires vessel hulls to be able to fend off small floating ‘growlers’ and ‘bergy-bits’.
Also, European container lines will have to decide on their appetite for political sensitivity surrounding the NSR. The route relies on Russian search-and-rescue (SAR) capability for vessel transits, and the route is expected to benefit from $7.7bn in investment by the Russian government.
“Whether this is good or bad, it is happening – the Northern Sea Route is opening up,” said Russian premier Vladimir Putin early last year.
The Trans-Siberian Railway, which uses Russia-installed tracks to carry Chinese trains to Europe, is one route where expedience has won out over politics. But it remains to be seen whether this can be replicated in the shipping industry.
Meanwhile, while climate activists will not be reassured to see vessels plying sensitive Arctic waters, the fuel left unburned and the associated CO2 emissions from shorter transits could play a pivotal role in decarbonising cargo.
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