A Study on the Northern Sea Route and its Economic Feasibility

Abstract

Future predictions support that Suez Canal will not be able to compensate the increasing size of ships that are used for trade between Asia and Europe. Relevant studies (Verny & Grigentin, 2009) also indicate that the economic growth of China is moving from the Southeast to the North. Therefore, alternative routes need to be considered in order to minimize transportation costs and satisfy demand of the traded containerized products between Northern Europe and Northern China. One of those alternative routes is considered to be Northern Sea Route (NSR). This research paper, thus, examines the economic feasibility of this route taking into account both the advantages and disadvantages that this route has to offer.