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Topic 2: The Arctic shipping routes for large-scale maritime shipping

Shen Li

Seychelle Cardoza

Zephra Currimbhoy

Xin Wei

The major Arctic shipping routes

Northwest Passage north of Canada and the Northeast Passage north of Russia, including the Northern Sea Route

Arctic shipping routes

Today, bypassing the Suez Canal reduces shipping distances from East Asia to western markets by close to 40%, from roughly 23,000 to 14,000 kilometres (14,300 to 8,700 miles). "It would thus decrease shipping lead times by 10 to 32%,"

Location

Schedule

generally open only in summer unless escorted by icebreakers Shipping companies are increasingly investing in ships that can break through thin ice, but their voyages are typically limited to the summer months

Expectation on regular use

Time frames

Bering Strait will open for an extended period around 2020,

the Northern Sea Route around 2025.

and the Transpolar Route around 2030,

the Northwest Passage will open last.

severe climate conditions, high costs, scope for poaching and other illegal activities, and lack of developed infrastructure in the northern territories, there are still many obstacles.

Geopolitical tensions

Geopolitical tensions could affect these routes

  • Sovereignty
  • Possibility of transnational crime
  • Geopolitical concern

Sovereignty

no clarity in either of these shipping lanes as to who actually has power over who can pass and what standards they must adhere to in order to do so

Sovereignty

Possibility of transnational crime

  • Illegal fishing and trafficking
  • Military and security
  • Presencerising tensions between powers

Possibility of transnational crime

Geopolitical concern

Geopolitical concern

Countries are preparing for these shipping routes

Countries are preparing

Russia

China

touting trans-Arctic shipping routes as a pivotal development

single enterprise to oversee the country’s expanding economic activities

Russia, China, Iceland, Canada, and the United States

completing a two-year feasibility study for a deepwater port

working on plans to transform Portland into an Arctic hub

The U.S

Iceland

Affect supply chains

in New Zealand

Affect supply chains in New Zealand

Two-thirds of the world trade that passes through the Suez Canal, which is 8% of the global trade, will be rerouted to the NSR.

Current traiding partners

Mainland China, Australia,

United States of America,

Japan

and South Korea

International shipping lines may not always prioritise NZ's freight needs

Challenges

VS

opportunities

North Atlantic Treaty Organization

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