Forget the Red Sea: China's icy and dangerous shortcut to Europe
High fuel prices, melting glaciers at the poles, and tensions in the Middle East have opened a faster route for cargo ships through the Arctic Ocean. China is the first to launch a regular freight service on it, and experts predict rapid growth.
Climate change and security tensions in the Middle East are changing the global trade map. The Chinese shipping company "Sea Legend" launched over the weekend the first regular freight service from China to Europe via the Arctic Ocean, in an attempt to bypass threats in the Red Sea and significantly shorten sailing times.
According to an investigation by the "Wall Street Journal", the cargo ship "Dubai Tower", capable of carrying 1,740 containers, will depart from the city of Ningbo in China on its way to the port of Felixstowe in the UK, navigating along the northern coast of Russia. This is the most significant commercial step in the region since the global shipping company Maersk successfully navigated the route in 2018.
In the past, shipping cargo via the "Arctic shortcut" lacked economic logic. However, the melting of nearly half of the summer glaciers in the region over the last fifty years has cleared a relatively passable path. At the same time, high fuel prices and Houthi attacks have made traditional routes expensive and dangerous. Fuel costs account for about 70% of sailing expenses, and last year the Chinese company completed a trial voyage to the European continent in just 20 days, about half the time required for the long detour around the Cape of Good Hope in Africa.
However, the new route carries heavy risks. The insurance company "Copa" notes that insurance premiums in the Arctic region are 40% higher compared to other routes. Despite the warming, ships are sometimes forced to hire the services of icebreakers. The dangers of navigation were illustrated just recently when a Russian tanker suffered heavy damage to its hull despite being accompanied by an icebreaker, an event that cost its insurers about 650,000 dollars. Nevertheless, economists estimate that when a ship manages to forgo the services of an icebreaker, the price of an Arctic voyage drops and it becomes particularly competitive and profitable.
The Chinese move also has distinct geopolitical motives. Western companies are hesitant to enter these waters, as Russia claims sovereignty over the Northern Sea Route and requires permits from its state-owned nuclear company, Rosatom. China, which has declared itself a "near-Arctic state", is exploiting the current vacuum and its dependence on Moscow to establish a strategic presence.
Last year, only 23 cargo ships passed through the route, a negligible number compared to 30 ships per day in the Suez Canal, but the "Wall Street Journal" reports that experts predict rapid growth. The Asian power is determined to secure its place in global trade before the struggle for control over the pole intensifies.
