[250313.EN.SEA] Chinese Commercial Shipping Forecasts Greater Use Of Arctic Routes

ARCTIC channels are opening to commercial shipping through a shortcut across the Arctic Ocean to the United States and Europe using ice-strengthened ships that will save time and money.

Last year's arctic voyage led by the Polar Research Institute of China using the icebreaker Xuelong (Snowdragon) to Iceland has "greatly encouraged" Chinese shipping companies, said its director-general Huigen Yang.

"One commercial voyage by a Chinese shipping company may take place this summer," Mr Huigen said of a journey which would reduce the distance of a roundtrip from Shanghai to Hamburg of 5,185 kilometres compared to via the Suez Canal.

It is unlikely that the growth in icebreaker vessels will be staggering due to the shortness of the navigation season. Despite this, container trade through this route is forecast to grow between five and 14 per cent by 2020, with 10 per cent of projected trade to create US$683 billion in trade.

"If the route is constructively prepared, then the demand is there, it could be a huge number," Mr Huigen said, according to Reuters.

The route is not without risks but the growth in shipping from oil, gas exploration and mining businesses has increased to around 50 commercial vessels globally during 2012.

According to the climate change lobby, the ice cap is predicted to vanish in the summers by 2050 due to greenhouse gases which will see a new route opening for some ships.

But Demark's Nordic Bulk Carriers managing director, Christian Bonfils, doubts there will be enough melting to change commercial ship routing.

The Danish shipping company sent 10 vessels through the route in 2012 and although there is potential it is never going to be the "new Suez Canal", said Mr Bonfils.

Hong Kong shipmanagers Anglo-Eastern recently told its annual media lunch that increased Arctic shipping had little to do with climate change, but rather with improvements in hulls and the increased capacity of ice-strengthened ships combined with the rising prices of commodities which are more abundant in northern regions.

Source : HKSG, 18.03.13.