The Ministry of Oceans and Fisheries is set to begin the first trial run of a container ship on the Arctic route on the 22nd, amid concerns over safety and sanctions from neighboring countries like the United States and Russia.
According to the ministry on the 20th, the 'Panstar Acro' will depart from Busan New Port on the 22nd, making stops in the Arctic region before heading to the United Kingdom, the Netherlands, and Poland. While the government claims to have thoroughly prepared for the trial run, securing cargo and negotiating with nearby countries remain pressing issues.
As this is the first trial run for a container ship in the Arctic, there are concerns regarding safety. The government stated that it has equipped the vessel with low-orbit satellite communication systems and that a first-class navigator with polar navigation experience will be on board. Additionally, the ministry plans to operate during the 24-hour daylight period, avoiding nighttime navigation.
However, the rescue system in case of an emergency is somewhat unclear. Lee Soo-ho, head of the Arctic Route Promotion Division at the Ministry of Oceans and Fisheries, noted that the response time to an incident would vary depending on the location and the responsible country, making it difficult to provide a uniform standard. He added, "If such an event occurs, we will respond in the safest manner possible."
The economic viability of the route will be assessed after the trial run. While the Arctic route can reduce travel distance compared to the traditional Suez Canal route, additional costs for icebreaking and insurance will arise. Lee stated that the ministry would evaluate the economic feasibility based on the actual cargo volume and freight rates secured during the trial run, explaining that there are various scenarios to consider when comparing costs with the Suez Canal route.
Securing cargo is also an urgent task. The cargo loaded for this trial run is 788 TEU, which is lower than the 1,300 TEU identified in a preliminary demand survey conducted in June. The ministry explained that delays in ship preparation and the short operational period contributed to this reduction.
To transition to a regular route, stable round-trip cargo volumes must be secured. The ministry anticipates that approximately 1,300 containers will be filled with cargo from Europe on the return trip.
Sanctions from the United States and Russia also pose challenges. The Northeast Passage runs along the Russian coast, necessitating procedures related to navigation support from Russia.
Since the outbreak of the Russia-Ukraine war in 2022, international sanctions have intensified, leading to the cancellation or suspension of several Arctic energy projects involving South Korean shipbuilders. The ministry stated that it has conducted sufficient consultations in advance to prevent a recurrence of such situations.
Additionally, the issue of insurance and reinsurance has been a hurdle. The insurance for this trial run is structured so that a domestic insurer takes on the primary risk, with several reinsurers sharing the risk.
Lee confirmed that the ministry has completed discussions on the necessary insurance and reinsurance for this operation, scheduling the trial run to coincide with a time when it can operate without support from Russian icebreakers.
In the long term, securing vessels and specialized personnel will also be necessary. Currently, domestic shipping companies do not have enough ice-class and icebreaking container ships available for the Arctic route. The government is promoting financial support for domestic shipping companies to secure vessels while developing construction technology for ice-class and icebreaking container ships.
The Ministry of Oceans and Fisheries is also considering the Northwest Passage, which passes near Canada and Alaska, in addition to the Northeast Passage that runs through Russia. However, the Northwest Passage is considered to have a higher level of navigational difficulty, making it risky to pursue a trial run in the short term.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.