Proceedings Of The Marine

SUM 2013

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.

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The main challenges during these months arefog,fatcoastallandscapes,remoteness, andvaryingicepresence.Inwinter,theregion experiencesharshiceconditions,extremely lowtemperatures,andconstantdarkness. Changingweatherconditionswithpushing-off andpushing-towindsthatmaycauseiceridges arepossibleduringallseasons.Iceforecasting services,whicharebecomingquiteaccurateand reliable,worktoreducethisuncertainty. Increased Use In2010,fourvesselstransitedtheNorthernSea Route. In 2011, 34 vessels passed, including a 162,000deadweighttontanker(thelargestvessel evertopass)anda75,000deadweighttonbulkcarrierloadedwithironore.In2012,atotalof46vessels passedthroughtheNSR.2 Duringthe2011and2012seasons,several75,000deadweighttontankerstransitedtheNSRwithcargoboth ways ascondensatefromRussiatoChina,andjet —g fuelfromKoreatotheEuropeancontinent.Aseismic vesselsavedeightdaysmobilizingtoNewZealand fromHammerfest,Norway,viatheNSR,compared tothealternativevoyagethroughthePanamaCanal.3 Commercial Implications In 2012, Lloyd's of London and Chatham House reportedabout$100billionofinvestmentwilltake placeduringthenextdecadeintheArctic,mostlyin offshoreenergy.4 With the increasing importance of Arctic mining, the opportunityforfasteraccessviatheNSRtoresourcehungrymarketsinAsiaopensup.Inthefuture,the Arctic,aregionwheregasmeetsore,canserveasa platformforindustrialprocessingin situ beforeshipmentdirectlytointernationalmarkets. Asweseeit,openingtheNorthernSeaRoutemay haveimplicationsforseveralindustries. • Theshipbuildingandconstructionindustrieswill beneftbyusingtheNSRforcost-effcientvessel positioningaswellasfromtheincreaseddemand forspecializedice-classvesselsandstructures serving offshore mining. • Forcargoownersandindustrialcompanies,the NSR offers a shorter trade route between the North Atlantic and the North Pacific regions. Additionally, new sources of industrial raw materialsandenergyofferclosersupplysources www.uscg.mil/proceedings Tschudi Arctic Transit performs ship-to-ship gas condensate transshipment to the tanker Vladimir Tikhonov, near the North Cape, Norway, before it departs for Thailand via the NSR. Photo courtesy of the Tschudi Shipping Co. andtheopportunitytodevelopanewindustrial frontier. • ShippingcompaniesutilizingtheNorthernSea RoutefromanorthernEuropeanloadingport in the Baltic Sea to the Far East save about 15 days(at13knots),dependingontheportofdischarge,comparedtotheSuezCanal.Thedistance betweenVancouverandRotterdamiseightdays shorterthanthroughthePanamaCanal.Inaddition, repositioning and demand for destinational shippingservicesintoandoutoftheArcticwill offerfurthertradingpossibilities. Destinational Shipping Inthenearterm,itislikelythatdestinationalshipping willincreaseviaspecializedshuttletankers,bulkers, multipurposevessels,andliquefednaturalgascarriers,aswellasvesselstransportingoil,gas,minerals, andequipmentinandoutoftheArctic. Forexample,in2012theRussianSakhalinShipping Companylaunchedanewseasonalservicebetween theportofEverett,Washington,andPevek,Chukotka, andotherportsinthenortheasternregionofRussia.5 Short Term Outlook Themainfactorinfuencingtheshort-termoutlook fortheNSRistheinherentlyunpredictablefreight market;thisisevenmorediffculttoassessbecause Summer 2013 Proceedings 19

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