The domestic shipping industry is expressing concerns over the 'Arctic route development.' Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, has proposed this initiative to capture the voting sentiment in the Busan area, but shipping companies find the Arctic route uneconomical, and therefore see no compelling reason to use it. The Arctic route can only be traversed during the time of year when ice melts, and it requires icebreakers that are 30-50% more expensive than regular vessels. The lack of intermediate ports, preventing transshipment during the journey, is also a drawback.
The Arctic route has been a periodically discussed topic since about a decade ago when global warming intensified. The candidate recently visited Busan and stated that to create 'Marine Capital Busan,' the Ministry of Oceans and Fisheries should transfer its headquarters to Busan and that the Arctic route should be developed centered around Busan Port.
The distance from the existing Busan Port to the Port of Rotterdam in the Netherlands, via the Suez Canal, is approximately 22,000 kilometers. If traveling via the Arctic route, the distance shortens to 13,000-15,000 kilometers, significantly reducing fuel costs and travel time.
The shipping industry, which transports goods across global sea routes, believes that there is a low likelihood of utilizing the Arctic route even if it opens. This is because, despite sea ice melting due to climate change, the actual operational period is limited to the summer. The Arctic Ocean is different from regular seas and requires icebreakers, making it inefficient to purchase an expensive icebreaker for just a few months of use each year. Currently, no national shipping company possesses an icebreaker.
For container ships, which are crucial to maritime logistics, using the Arctic route is disadvantageous. Container ships dock at intermediate ports to load and unload tens of thousands of containers, making money in the process. Stopping more at intermediate ports is more beneficial than arriving at the destination early. While using the Arctic route from Busan decreases the arrival distance, it significantly reduces the number of intermediate ports.
For these reasons, major shipping companies such as Swiss MSC, French CMA-CGM, and German Hapag-Lloyd have stated that they will not utilize the Arctic route. HMM, the leading domestic shipping company, has also indicated that it is not preparing for the Arctic route.
Kim In-hyun, an emeritus professor at Korea University, noted, 'There is a need to develop the Arctic route. However, unlike irregular lines, major regular shipping companies would have to invest in expensive new vessels for just a few months of use, leaving their existing ships idle, making the Arctic route unnecessary.'