Proceedings magazine is a communication tool for the Coast Guard's Marine Safety & Security Council. Each quarterly magazine focuses on a specific theme of interest to the marine industry.
Issue link: https://uscgproceedings.epubxp.com/i/149372
Developing a proftable shipping system using the Northern Sea Route. byMR. FELIXH.TSCHUDI Chairman Tschudi Shipping Co. The Northern Sea Route (NSR) can significantly shortenthetransittimebetweentheNorthAtlantic andtheNorthPacifc,andhasthepotentialtoaccelerateArcticresourcedevelopment.Toachievethis, informationregardingtherouteaswellasitsavailabilityandsignificance,mustbecomemorewidespreadamongcargoowners,shipowners,andindustriesthatcouldbeneft. AlthoughtheNorthernSeaRouteisstillbeingdevelopedasaviablecommercialoption,usehasalready startedandispickingupmomentum.Thisacceleratingdevelopmentispartlyduetoclimaticchanges leadingtoicereduction,technologicaladvances,and renewedinterestfromArcticnations.Themaindriver ishighcommodityprices akinghighercostsand —m investmentsproftable espitethehigheroperating —d costs in the harsh Arctic environment. International Commercial Shipping via the Northern Sea Route In 2006, Tschudi Shipping Group focused on port developmentandpurchasedtheSydvarangeriron oreminethatwasclosedin1996,andtherelatedport areasinKirkenes,Norway.Theminewentpublicin 2007,andin2009,thefrstvesseldepartedforChina with75,000metrictonsofironoreconcentrate.1 During 2010, all shipments were planned to go to China via the traditional routes through the Suez CanalorviaCapeofGoodHope.Againstthisbackground of an increasing number of shipments to China,itbecamenaturaltothinkoftheNorthernSea www.uscg.mil/proceedings Arctic Opportunities Time Equals Money Routeasanalternativewithpotentiallysignifcant savings.Thissoundslikeanattractiveoption,butit is not that simple to realize. For example, to establish the commercial feasibility,alargenumberofstakeholderswouldhavetobe involved:cargoowners,shipowners,shipbrokers, commodity traders, Rosatomflot (the Russian icebreakeroperator),insuranceandlegalexperts,classifcationsocieties,publicauthorities,andscientifc institutions.Butcouldthesepartiescollaboratewithoutindividualinterestsorcommercialconsiderations complicatingtheissue? InApril2010,thenonprofitfoundationCentrefor HighNorthLogisticstooktheinitiativetoorganize aworkshopwithanumberofdifferentstakeholders. Representatives,mostlyfromRussiaandNorway, gatheredinKirkenestodiscussopeningtheNorthern Centre for High North Logistics workshop. Photo courtesy of Tschudi Shipping Co. Summer 2013 Proceedings 17