Chinese shipping company Sea Legend has launched a weekly service between China and Europe on the Northern Sea Route along the coast of Russia, opening a seasonal alternative to the Suez Canal. A South Korean vessel is following in its wake.
The container ship Dubai Tower arrived at Teesport on England’s northeast coast on September 9 after a 25-day voyage from Ningbo-Zhoushan Port near Shanghai. From there, it headed on to Hamburg and to Gdynia in Poland.
The vessel’s cargo included electric vehicles, lithium-ion batteries, renewable energy equipment and other machinery. At least seven more Chinese container ships are expected to follow it this year.
According to China’s state-run Global Times, “Chinese port and shipping operators have also signed green-channel agreements with partner terminals in Europe, giving arriving vessels priority berthing and cargo handling and sharply reducing anchorage waits. This helps exporters reduce inventories, free up working capital and meet tight delivery deadlines.”
This is in great contrast to the strong opposition of European politicians to Chinese imports, to Chinese alternative energy equipment in particular, and to China’s cooperation with Russia. European ports want the business and customers in Europe want the products.
Global Times went on to note that:
“On September 22 last year, the China-Europe Arctic Express between Ningbo-Zhoushan Port and Felixstowe [another port on the east coast of England] completed its maiden trial voyage. Traveling through the Northern Sea Route, the vessel reached the UK port in 20 days, demonstrating the feasibility of the entire operation, including route navigation, the transport of new-energy-related hazardous cargo and coordination with overseas ports.
“The voyage marked a significant step by China’s port and shipping sector in advancing Belt and Road cooperation and the Polar Silk Road while supporting the country’s dual-circulation development strategy.”
Is this gloating or simple reporting of the facts? Either way, the well-organized, forward-looking Chinese are once again taking the initiative. And the South Koreans are not far behind.
On August 22, the South Korean container ship PanStar Arco departed Busan for Europe via the Northern Sea Route, carrying used cars, auto parts and chemical products. This is the first test of the route by a South Korean vessel since 2016. A total of twenty-nine Chinese vessels are reported to have used it last year.
The PanStar Acro arrived at Felixstowe on September 12, Rotterdam on September 13 and Gdansk on September 16. It is now on its way back to Busan, scheduled to complete the round-trip voyage in about 45 days.
That would be at least 20 days faster than sailing via the Suez Canal under normal circumstances. The 13,000-kilometer Northern Sea Route is 36% shorter than the 20,300-km route via Suez.
This swaps the risk of getting shot at by the Houthis for the hazards created by sea ice, but the PanStar Arco, which was built at the Guangzhou Wenchong Shipyard in China, has “ice-class” features (reinforced bow and hull, ice-resistant propeller, etc.) which allow it to operate in the light-to-medium ice conditions typical of late summer and autumn without an icebreaker escort. And, if necessary, Russia has more than 20 icebreakers capable of working the Northern Sea Route.
The PanStar Arco’s voyage is part of South Korea’s effort to reduce its exposure to war in the Middle East. Earlier this month, the South Korean Ministry of Oceans and Fisheries initiated a study of the commercial viability of arctic shipping routes. Looking ahead to the 2030s, the ministry plans to assess how much it could make trade with Europe more efficient and reliable.
Last April, the director of the Polar Strategy Research Division of the Korean Maritime Institute said that “Korea is not looking at Arctic shipping simply as a transport route.” It also regards it as “a strategic nexus that can be connected to domestic industry and the broader Maritime Capital Region Strategy.”
That strategy aims to develop a maritime economic zone centered on the port cities and shipyards of Ulsan and Busan/South Gyeongsang Province. The Northern Sea Route offers a shortcut to Europe that could give South Korean shipping and shipbuilding companies a competitive edge. and contribute to economic growth.
Japan has no such policy. Instead, Prime Minister Sanae Takaichi’s government has focused on supporting Ukraine, taking Japan’s relations with Russia to a new low. European shipping companies tend to avoid the Northern Sea Route for both political and environmental reasons, preferring to take the long way around the Cape of Good Hope.
Both China and South Korea will take advantage of this.
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