Analysis of development, potential and importance of the Northern Sea route

Abstract

Today, almost 80% of cargo is transported by sea. Most of the global maritime shipping operations are performed in the direction East – West, through the southern routes, i.e. Singapore - Suez Canal - Gibraltar - Europe. The total fuel cost is the major concern and the main drawback of these routes. According to the latest statistics and analyses, the price of fuel is growing and such a trend will cause a great impact on the economies of developing countries. For these reasons, new alternative maritime routes, in which the optimization of transportation in the maritime transport network can be achieved, are to be found. There is a possibility of establishing such routes in the areas of high latitudes where climatological changes and diminishing ice open up entirely new possibilities for shipping and present completely new challenges in the global shipping industry. Through the comparative analysis of the main routes and the SWOT method, this paper discusses the advantages, potential and importance, as well as the level of reliability, threats and disadvantages of using the areas of high latitude in maritime transport.