Tuesday, November 25, 2014

More Arctic shipping eyed

The company that made the first commercial transit of the Northwest Passage plans to increase its shipments through the legendary waterway next year, suggesting such traffic is coming sooner than anyone anticipated.
“We hope and expect to do it,” said Christian Bonfils of Nordic Bulk Carriers, the Danish shipper which owns the Nordic Orion.

The vessel made history last September when it hauled 15,000 tonnes of coal to Finland from Vancouver through waters that once were impenetrable ice.
It took four days less than it would have taken to traverse the Panama Canal, and its greater depths allowed the Orion to carry about 25 percent more coal.
Sailing through the passage saved the company about $200,000 and resulted in a nicely-profitable voyage.
“We had a very smooth voyage and not any major delays,” noted Bonfils.
“We’re very pleased about it.”
The company is talking with the Canadian government about ramping up those shipments, Bonfils said.
The number of planned transits is under discussion.
“It’s a bit too early to say,” Bonfils said from Copenhagen. “The window for doing this changes every year.
“We need to slowly explore what is actually possible to do here,” he stressed.
A federal spokesman confirmed the company has broached its plans for multiple transits with the government.
“Nordic Bulk Carriers representatives have met with Canadian Coast Guard and Transport Canada representatives to discuss anticipated transits in 2014 through the Northwest Passage,” said Kevin Hill of the Department of Fisheries and Oceans, which is responsible for the Coast Guard.
Those discussions have included possible icebreaker assistance, Hill noted.
That means an era that many experts relegated to the future is already here, said Rob Huebert, an Arctic policy expert at the University of Calgary.
“The game is afoot,” he remarked.
Huebert suggested previous surveys reporting almost no interest in the Northwest Passage simply were the result of shippers playing their cards close to their vests.
“When you look at the number of ice-strengthened vessels that came out of the woodwork for [Russia’s] Northern Sea Route, it’s obvious that some companies have been quickly building up capacity,” he noted.
“It’s obvious now the companies aren’t being forthright in terms of what their capabilities are.”
In Russia, 421 vessels applied for permission to use that country’s northern passage last season.
Now that Nordic Bulk Carriers has shown it’s possible, and is acting on that information with more crossings, other shippers are likely to follow suit, said John Higginbotham, a professor at Carleton University and former assistant deputy minister of transport.
“I expect more companies to take advantage of it,” he said. “I think there’s some Canadian companies that got scooped.
“I believe they only woke up to this development.”
Higginbotham said the ice in the Passage varies in extent from year to year. But the old, tough, multi-year ice that once blocked the route is largely gone.
“It is thinner and more rotten, and [has] less volume than ever before,” he noted.

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