Northern Sea Route (NSR) as a Major Transport Route: Opportunities and Challenges

Abstract

Northern Sea Route (NSR) is focused on because it might bring a higher efficiency of logistics between Europe and Asia. However, until the route becomes a major transport route, there will be challenges. The purpose of this paper is to discuss both opportunities and challenges by focusing on different elements: technical feasibility, economic feasibility, and geopolitical/policy aspects. Regarding the technical feasibility, discussion starts with the monitoring of actual vessel movements. By analyzing transit time/reliability as well as navigability, current service levels and technical challenges are examined. Regarding the economic feasibility, we will mainly focus on the possible advantages of NSR for supply chain efficiency of shippers. Some conceptual ideas are proposed. Finally, the geopolitical and policy aspects are also critical. In this regard, recent policies including the Polar Silk Road are reviewed, and future prospects are examined.