The Northern Sea Route versus the Suez Canal: cases from bulk shipping

The navigation distance via the Northern Sea Route (NSR) from a Northwest-European port to the Far East is approximately 40% shorter compared to the route via the Suez Canal. The shorter distance may facilitate more than a doubling of vessels’ operational energy efficiency performance. There is at present substantial uncertainty in schedule reliability via the NSR. Unless the schedule reliability is improved, the NSR should primarily be explored for bulk rather than for liner shipping. A major disadvantage with the NSR is its seasonality. Shipping operations in the summer time via the NSR may already today be profitable for minor bulk trades. Additional shipping routes may give more flexibility, and the NSR route choice option may facilitate supply chain agility and adaptability.

► NSR operations in the summer time may already today be profitable for minor bulk trades.
► There is at present substantial uncertainty in schedule reliability via the NSR.
► The NSR may facilitate more than a doubling of vessels’ energy efficiency performance.
► The NSR route choice option may possibly increase supply chain agility and adaptability.
► CSR policy for shipping companies may emerge as one of the drivers for developing the NSR.