Modeling the profitability of liner Arctic shipping

Authors: Lasserre, Frédéric
Abstract: A significant share also analyze costs based on a single transit, which is consistent with the ad hoc service that is taking shape along the Northern Sea Route, but that does not picture adequately a possible regular service that could be set up during a whole shipping season for instance, and that would imply a loop service. The Arctic area is not considered profitable for container shipping during the winter time, thus the model works with a six-month sailing season. The different starting point thus accounts for a competitive advantage for the Arctic route in this scenario: a shorter route that enables the ship to make more rotations and a better fuel consumption per trip. The literature readily underlines that Arctic routes, being shorter, could imply a significant cost advantage because of a reduced fuel consumption, stemming both from a shorter distance and from a reduced speed.
Document Type: Chapitre d'ouvrage
Issue Date: 1 January 2020
Open Access Date: 1 July 2021
Document version: AM
This document was published in: Arctic shipping, climate change, commercial traffic and port development
Alternative version: 10.4324/9781351037464
Collection:Chapitres de livre

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