Performance Analysis: Using the Northern Sea Route as an Alternative to Traditional Routes

The grounding accident of M/V EVER GIVEN in the Suez Canal causes a catastrophic loss on shipping companies. Alternatively, previous studies have presented encouraging findings remarkable benefits time and cost saving Northern sea route (NSR) due to extend ice-free shorten distance. Ships using NSR could as much 40% sailing distance from China (Shanghai) Europe (Rotterdam) compared with traditional via Canal. This paper investigates economic potential cost-effective comparison Route (SCR) between Europe. To achieve this target, study evaluates net profit for SCR fleet by involving factors, e.g., bunker price, ice condition ship loading rate, etc. case-study results show that is not profitable SCR, limited cargo transport capability restriction. Only if rate lower than some threshold value or price high enough, turns be profitable.