As China announced it is to open a new shipping route through the Arctic in an effort to avoid the Middle East there are new calls for shipowners to consider the safety of crews.

Amid ongoing attacks on vessels in the strait of Hormuz and the Red Sea,  Chinese container shipping company Sea Legend, revealed it is to launch its first regular shipping service through the Arctic. The shipping service will connect Ningbo in China to Felixstowe in the UK through the Northern Sea route across Russia’s Arctic coast. To be known as the “Ice Silk Road”, the route evokes historical trading pathways that once linked China and Europe.

The group said the route will cut the average 40-day sailing time between the two ports in half.

Many European shipping lines have avoided this route on the grounds of worsening relations with Russia and the fears over causing ecological harm to the Arctic ecosystem. The Arctic Ocean is turning into a highly contested arena between the US, Russia and China due to melting polar ice caps.

It comes as the Secretary-General of the International Maritime Organization (IMO), Arsenio Dominguez, issued a statement, following an incident involving the cargo ship Timamah which was hit by a projectile off the coast of Al Mokha, Yemen. Several seafarer fatalities have been confirmed.

He said: “It is with sadness and regret to know that, once again, innocent seafarers have lost their lives in an indefensible attack on international shipping. I offer my deepest condolences to the families of those involved.

“It is particularly troublesome that the most recent attack has taken place in the Red Sea and Gulf of Aden area. I reiterate my call for shipowners and ship operators to thoroughly assess risks before transiting this and other regions and follow appropriate best management practices. Seafarers deserve to be protected and allowed to do their jobs in safety and security.

“These continued attacks on shipping only serve to escalate tensions and threaten global supply chains on which everyone depends.

“I also urge the immediate and unconditional release of all seafarers who continue to be held captive following piracy attacks in the Red Sea and Gulf of Aden region. Ensuring seafarer safety is a fundamental obligation under international law and a shared responsibility of the global community.”

Insurers say the use of the Arctic route to avoid the Middle East transits is far from simple.

Jonathan Steenberg,  lead UK economist at Coface said: “The launch of a regular container service through the arctic is another sign that the Northern Sea Route (NSR), once considered largely theoretical, is developing into a commercial reality, with the potential to become an increasingly attractive trade corridor between Asia and Europe.

“However, Russia’s effective monopoly over the route means geopolitical risks remain. While China appears well positioned to secure access, it’s less clear whether the same opportunities will be available to international shipping companies. For operators, the benefit of shorter transit times must be weighed against the risks of dependence on a Russian-controlled corridor.”

In its research into the viability of arctic sea routes Coface concluded that, over a five-year horizon, Arctic routes will remain primarily dedicated to the transport of raw materials. Cost savings are particularly significant for liquid bulk (crude oil, diesel, methanol or LNG), with reductions of up to 45% to 50% in some cases. Dry bulk (cereals, ores, construction materials) may also become competitive, but mainly when ships can operate without icebreaker escort.

“Conversely, containerised transport remains uncompetitive, despite the shorter distances,” it added. “Operational constraints, the limited size of vessels and the specific costs of Arctic navigation prevent it, at this stage, from competing with the economies of scale of traditional routes.”

It predicted that only 3.5% of trade between East Asia, Europe and North America is likely to shift to Arctic routes by 2030. It added there is the potential for trade opportunity in excess of $22 billion on North America–Asia routes alone.

However, “canal economies” such as Egypt, Panama and some port hubs such as Singapore face long-term strategic risk.

Amid ongoing attacks on vessels in the strait of Hormuz and the Red Sea,  Chinese container shipping company Sea Legend, revealed it is to launch its first regular shipping service through the Arctic. The shipping service will connect Ningbo in China to Felixstowe in the UK through the Northern Sea route across Russia’s Arctic coast. To be known as the “Ice Silk Road”, the route evokes historical trading pathways that once linked China and Europe.