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Feasibility of the Northern Sea Route: The role of distance, fuel prices, ice breaking fees and ship size for the product tanker market

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  • Theocharis, Dimitrios
  • Rodrigues, Vasco Sanchez
  • Pettit, Stephen
  • Haider, Jane

Abstract

This paper investigates the feasibility of the Northern Sea Route (NSR) using a speed optimisation model to minimise the required freight rate, by employing current data from a shipowner, supported by secondary data, conducting petroleum product transport on the NSR. The oil product tanker segment is used to assess route alternatives taking into account distance, ship size, ice breaking fees, fuel types and prices. Environmental policy elements are included in the cost analysis to account for low sulphur fuels from 2020, a prospective ban on the use of heavy fuel oil in the Arctic, and a possible global fuel tax.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:transe:v:129:y:2019:i:c:p:111-135
    DOI: 10.1016/j.tre.2019.07.003
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    4. 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.
    5. 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.
    6. 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.
    7. Zhen, Lu & Wu, Yiwei & Wang, Shuaian & Laporte, Gilbert, 2020. "Green technology adoption for fleet deployment in a shipping network," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 388-410.
    8. Ma, Shuai & Lin, Meng & Lin, Tzu-En & Lan, Tian & Liao, Xun & Maréchal, François & Van herle, Jan & Yang, Yongping & Dong, Changqing & Wang, Ligang, 2021. "Fuel cell-battery hybrid systems for mobility and off-grid applications: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    9. Beullens, Patrick & Ge, Fangsheng & Hudson, Dominic, 2023. "The economic ship speed under time charter contract—A cash flow approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    10. Koçak, Saim Turgut & Yercan, Funda, 2021. "Comparative cost-effectiveness analysis of Arctic and international shipping routes: A Fuzzy Analytic Hierarchy Process," Transport Policy, Elsevier, vol. 114(C), pages 147-164.
    11. Fan, Ailong & Xiong, Yuqi & Yang, Liu & Zhang, Haiying & He, Yapeng, 2023. "Carbon footprint model and low–carbon pathway of inland shipping based on micro–macro analysis," Energy, Elsevier, vol. 263(PE).
    12. 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.
    13. 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).
    14. Sibul, Gleb & Jin, Jian Gang, 2021. "Evaluating the feasibility of combined use of the Northern Sea Route and the Suez Canal Route considering ice parameters," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 350-369.

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