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Issue link: https://uscgproceedings.epubxp.com/i/149372
ofvaryingfuctuationswithinthedifferentshipping segments. Themaindriveristheeconomicsavingsachievedby transitingtheNSRrelativetothetraditionalroutes. OtherimportantfactorsarecommoditypricedifferencesinAsianandWesternmarkets,deliverytime sensitivityforvariouscargoes,andvesselrepositioningcost.Inthiscontext,thetimerequiredtoplanand executethepassageisimportant.Itisafunctionof iceconditions,waitingtime,availabilityofsuitable vessels, and the time needed to get the approval to passtheNSR. Themainlimitationisthesupplyofice-classtonnage. Vesselavailabilityvariesgreatlyamongdifferentsegmentsandsizes,butisverylimitedwithinthelarger tonnages,inparticularfordrybulkandliquefednaturalgascarriers.Otherfactorsincludefuelprices,the NSRtransitfees(ladenandinballast),andthecostof insuranceandescorts. Inmyopinion,theNSRisunlikelytotakeamajor shareofthetransitcargoesbetweenthePacifcandthe Atlanticasthemajortraderoutesoftheworldremain toofarsouthfortheNSRtobecomerelevantforthe largestcargofows.Additionallythreateningtofuture NSRdevelopmentarethepotentially rohibitiveIMO p PolarCoderequirementsandthelonger-termuncertaintyofclimatechangeeffectsonfutureiceconditions.However,thisshouldnotbetakenforgranted aslongasRussiawantsitdifferently. RussianPresidentVladimirPutinpredictedthathis country'sNorthernSeaRoutewouldrivaltheSuez Canalasaglobaltraderoute.6Inresponse,anewRussianbillregulatingmerchantshippingontheNorthernSeaRouteenteredintoforceinMarch2013.7 Presently,Rosatomfot'sfeetoficebreakersconsists ofsixvessels,whichwillbegraduallyphasedoutin 20years.TheRussiangovernmentisfacinguptothis challengebyorderingtheworld'slargestandmost powerfulicebreakersfordeliveryattheendof2017.8 Balancing Economic and Environmental Needs TheincreasedactivityintheArctic,withitscollateralofnewshippingopportunities,alsorepresents newenvironmentalchallenges.Thereisawindowof opportunitynow,beforethedevelopmentaccelerates, fordesigningtheplayingfeldinawaythatbalances the desire for economic development and the needs oftheenvironment.Considerationsmustbetaken to integrate economic and environmental needs and takeintoaccountissuessuchasroutingmeasures, speedreductions,designationofparticularly ensitive s Børge Ousland's blog, www.ousland.no/blog, documents the Arctic explorer's three-month journey around the North Pole. Photos courtesy of Tschudi Shipping Co. 20 Proceedings Summer 2013 www.uscg.mil/proceedings