Feasibility of a Sea Route through the Canadian Arctic
AbstractOne predicted consequence of global warming is the thinning of Arctic sea ice. This raises the question whether the fabled Northwest Passage can be used for year round ship traffic, and whether the distance saved by using the polar route justifies the incremental investment in ice-breaking ships. A conceptual study using computer simulation was conducted to evaluate the Northwest Passage versus the Panama Canal routes between eastern North America and Japan. Recent historical ice conditions were modelled stochastically to calculate ship transit time. The economic performance was then evaluated by estimating the port-to-port shipping cost component of the overall required freight rate, again using stochastic modelling for a variety of cost factors. The most critical economic variable is the incremental capital cost between an ice capable and a standard Panamax ship. Shipping from St John's Newfoundland to Yokohama is economic through the Northwest Passage even with an incremental capital cost of 80%. Extending the route to New York would make the Northwest Passage non-competitive. We report the sensitivity of the port-to-port shipping cost for a number of economic factors, with capital and fuel cost being the most significant. Maritime Economics & Logistics (2007) 9, 324–334. doi:10.1057/palgrave.mel.9100185
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Maritime Economics & Logistics.
Volume (Year): 9 (2007)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jonkeren, Olaf & Jourquin, Bart & Rietveld, Piet, 2011. "Modal-split effects of climate change: The effect of low water levels on the competitive position of inland waterway transport in the river Rhine area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1007-1019.
- Nadine Heitmann & Katrin Rehdanz & Ulrich Schmidt, 2011. "Determining Optimal Transit Charges: The Kiel Canal in Germany," Kiel Working Papers 1741, Kiel Institute for the World Economy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.