Economic feasibility of the Northern Sea Route container shipping development
MetadataShow full item record
From year to year the traffic of goods between Europe and Asia rises, the need for a new route for transportation becomes more and more obvious. The new route should be competitive to the others and has its own competitive advantage. Nowadays an extra day of transportation can increase costs dramatically for trade companies, so it is necessary to develop a route, which have a short transportation period as the main advantage. The Northern Sea Route is the challenging candidate. The research corresponds studying of major advantages and disadvantages of international transportation through the NSR. The case study, provided in the research, has a target to estimate costs of establishing a permanent transportation line along the NSR between East and West; calculation of the operating costs for the line and the comparison to the route through Suez Canal. The main aim of the research is to find out, if it is feasible for shippers to use the NSR for transit container shipping. The empirical part of the research is devoted to the collection data about the current state of the NSR development, interested parties of this development and the legal framework for NSR use. The data gathered from different sources, which include interviews with representatives of companies and organizations, interested in further NSR development, official guidelines and researches, based on similar topics. Analysis and further discussion revealed that the NSR can be competitive with comparison to the route through Suez Canal in the nearest future, if the work on solving current problems is successfully performed. During the research it was concluded, that the use of the NSR is not feasible nowadays, but the changes in legal framework, fees and global climate can bring the condition of the NSR closer to competitive level.
Masteroppgave i bedriftsøkonomi - Høgskolen i Bodø, 2010