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The Northern Sea Route competitiveness for oil tankers

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  • Faury, Olivier
  • Cariou, Pierre

Abstract

This article proposes a decision model for a ship-owner who contemplates the benefits of sailing north via the Northern Sea Route (NSR) or south via the Suez Canal Route (SCR) when transporting oil products from Russia to Asia. The decision is based on potential cost and transit time savings that change on a monthly basis according to sailing conditions and the area along the NSR. This study is applied to a 1A Ice-Class Panamax tanker vessel sailing through the NSR compared to a Panamax tanker vessel sailing through the SCR. It concludes that the NSR provides a competitive advantage in the months from August to November when conservative assumptions on ice conditions (higher bound) are considered for the level of ice thickness encountered along the route and from July to November when a lower bound is assumed.

Suggested Citation

  • Faury, Olivier & Cariou, Pierre, 2016. "The Northern Sea Route competitiveness for oil tankers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 461-469.
    • Handle: RePEc:eee:transa:v:94:y:2016:i:c:p:461-469
    DOI: 10.1016/j.tra.2016.09.026
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    References listed on IDEAS

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    1. Pierre Cariou & Olivier Faury, 2015. "Relevance of the Northern Sea Route (NSR) for bulk shipping," Post-Print hal-02077034, HAL.
    2. Scott Stephenson & Laurence Smith & Lawson Brigham & John Agnew, 2013. "Projected 21st-century changes to Arctic marine access," Climatic Change, Springer, vol. 118(3), pages 885-899, June.
    3. Hua Xu & Zhifang Yin & Dashan Jia & Fengjun Jin & Hua Ouyang, 2011. "The potential seasonal alternative of Asia--Europe container service via Northern sea route under the Arctic sea ice retreat," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(5), pages 541-560, April.
    4. Wang, Shuaian & Meng, Qiang, 2012. "Sailing speed optimization for container ships in a liner shipping network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 701-714.
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    Cited by:

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    3. Wang, Hua & Zhang, Yiru & Meng, Qiang, 2018. "How will the opening of the Northern Sea Route influence the Suez Canal Route? An empirical analysis with discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 75-89.
    4. Faury, Olivier & Cheaitou, Ali & Givry, Philippe, 2020. "Best maritime transportation option for the Arctic crude oil: A profit decision model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    5. Zheng Wan & Jiawei Ge & Jihong Chen, 2018. "Energy-Saving Potential and an Economic Feasibility Analysis for an Arctic Route between Shanghai and Rotterdam: Case Study from China’s Largest Container Sea Freight Operator," Sustainability, MDPI, vol. 10(4), pages 1-13, March.
    6. Theocharis, Dimitrios & Rodrigues, Vasco Sanchez & Pettit, Stephen & Haider, Jane, 2019. "Feasibility of the Northern Sea Route: The role of distance, fuel prices, ice breaking fees and ship size for the product tanker market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 111-135.
    7. Laurent Fedi & Olivier Faury & Laurent Etienne & Ali Cheaitou & Patrick Rigot-Muller, 2024. "Application of the IMO taxonomy on casualty investigation: Analysis of 20 years of marine accidents along the North-East Passage," Post-Print hal-04483233, HAL.
    8. Benz, Lukas & Münch, Christopher & Hartmann, Evi, 2021. "Fuzzy-based decision analysis on Arctic transportation: A guidance for freight shipping companies," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Adapting to the Future: Maritime and City Logistics in the Context of Digitalization and Sustainability. Proceedings of the Hamburg International Conf, volume 32, pages 375-400, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    9. Rigot-Müller, Patrick & Cheaitou, Ali & Etienne, Laurent & Faury, Olivier & Fedi, Laurent, 2022. "The role of polarseaworthiness in shipping planning for infrastructure projects in the Arctic: The case of Yamal LNG plant," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 330-353.
    10. Pierre Cariou & Ali Cheaitou & Olivier Faury & Sadeque Hamdan, 2021. "The feasibility of Arctic container shipping: the economic and environmental impacts of ice thickness," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(4), pages 615-631, December.
    11. Theocharis, Dimitrios & Rodrigues, Vasco Sanchez & Pettit, Stephen & Haider, Jane, 2021. "Feasibility of the Northern Sea Route for seasonal transit navigation: The role of ship speed on ice and alternative fuel types for the oil product tanker market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 259-283.
    12. Benz, Lukas & Münch, Christopher & Hartmann, Evi, 2021. "Development of a search and rescue framework for maritime freight shipping in the Arctic," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 54-69.
    13. Nong, Duy & Warziniack, Travis & Countryman, Amanda M. & Grey-Avis, Erin, 2017. "Effects of a Melting Arctic on Risk of Invasive Species Spread," Conference papers 332828, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Theocharis, Dimitrios & Pettit, Stephen & Rodrigues, Vasco Sanchez & Haider, Jane, 2018. "Arctic shipping: A systematic literature review of comparative studies," Journal of Transport Geography, Elsevier, vol. 69(C), pages 112-128.
    15. Xu, Hua & Yin, Zhifang, 2021. "The optimal icebreaking tariffs and the economic performance of tramp shipping on the Northern Sea Route," Transportation Research Part A: Policy and Practice, Elsevier, vol. 149(C), pages 76-97.
    16. Wang, Yangjun & Liu, Kefeng & Zhang, Ren & Qian, Longxia & Shan, Yulong, 2021. "Feasibility of the Northeast Passage: The role of vessel speed, route planning, and icebreaking assistance determined by sea-ice conditions for the container shipping market during 2020–2030," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
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