Trans-Arctic Shipping routes and transport lead times

An article in BBC News (September 6, 2016) titled “Arctic Ocean Shipping routes to open for months” describes the melting arctic sea ice and new shipping routes. The article estimates if there is no dramatic reduction of Co2, these arctic routes may be open for 10 to 12 months of the year.  These arctic routes can decrease travel from East Asia to Rotterdam that takes 30 days through the Suez Canal to 20 days by 2050. However, a more aggressive low emissions scenario would keep arctic routes open for fewer months in the year and thus not impact travel time much. Most of these scenarios did not generate much benefits to shipping to the US from East Asia. How might manufacturers plan the impact of these routes on their global supply chains ? If these arctic routes open up, is it optimal to take advantage of them or refuse to use them ? How might global trade be impacted as the sea travel times decrease, thus decreasing transport costs ?

Advertisements

About aviyer2010

Professor
This entry was posted in Capacity, logistics, manufacturer, ship, Supply Chain Issues, Uncategorized and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s