Environment Forum

German ships navigate Northeast Passage – but is it a good thing?

Two German ships have successfully navigated their way through the fabled Northeast Passage on the first commercial journey by a western shipping company on the Northern Sea Route along Russia’s Arctic-facing northern shore — a new cost-cutting passageway from Asia to Europe made possible by climate change.  

The MV “Beluga Fraternity” and the MV “Beluga Foresight” (pictured above) arrived safely at Novvy Port/Yamburg in Russia at the delta of the river Ob on Monday after a 17-day trip through the icy cold but briefly ice-free Arctic Ocean after departing from Vladivostok on Aug. 21. The ships had earlier picked up their cargo in Ulsan, South Korea and after delivering it in Novvy Port will steam on to the Netherlands to complete the Pacific-to-Atlantic journey that explorers and merchants have been dreaming about for centuries. 

By taking advantage of the short two-month window of opportunity in August and September before the Arctic Ocean freezes over again, the journey from South Korean through the Northeast Passage (not to be confused with the Northwest Passage through Canada) to Europe cut about 3,300 nautical miles off the usual 11,000 nautical mile trip via the southern route through the Suez Canal. Instead of the usual 32-day journey on the southern route, the Northern Sea Route takes 23 days. The shorter distance cuts the cost of the journey considerably because less fuel was used — and thus less CO2 emitted. 

Climate change opens Arctic’s Northeast passage

Two German ships set off on Friday on the first commercial journey from Asia to western Europe via the Arctic through the fabled Northeast Passage – a trip made possible by climate change. Niels Stolberg, president and CEO of Bremen-based Beluga Shipping, said the Northern Sea Route will cut thousands of nautical miles off the ships’ journey from South Korea to the Netherlands, reducing fuel consumption and emissions of greenhouse gas. I had the chance to ask Stolberg a few questions about the Arctic expedition:

Question: What’s the status of the voyage? Stolberg: MV “Beluga Fraternity” and the MV “Beluga Foresight” have just started to sail from Vladivostok (on Friday) with the destination Novyy Port at the river Ob.

Question: When did they leave Vladivostok and when will they arrive in Europe? Stolberg: They’ve just left Vladivostok. They are scheduled to arrive in Novyy Port around September 6th. After discharging, they will proceed via Murmansk to Rotterdam. Estimated time of arrival is still to be confirmed and up to further voyage development.

Question: How much time/fuel/money/CO2 will this northern route save? Stolberg: The amount of time, fuel, money or emission saved will be significant by transiting the Northeast Passage instead of sailing the traditional way through the Suez. From Ulsan via the Suez Canal to Rotterdam it would be a roughly 11,000 nautical mile journey whereas the short cut between Asia and Europe utilising the Northeast Passage is a 8,700 mile journey. The saved distance in detail always depends on the route, so the routes could be about 3,000 to 5,000 miles shorter. Savings of about three million euros by sending six vessels through the Northeast Passage per open time frame is realistic. Saving distance means saving bunker means saving money: That is the formula.

Question: Your company has been a pioneer in reducing costs/CO2 — is that why you’re so eager to sail the northern route? Stolberg: It is a hallmark of the corporate philosophy of Beluga Shipping to go off the beaten tracks whenever possible and reasonable: MV “Beluga SkySails”, co-powered by a towing kite system, or many projects developed and driven by our own department “Research & Innovation” follow that principle with the overall intention and make shipping more efficient as well as into a greener business. In this sense, we reckon that the Northeast Passage offers unmatched chances for efficient sea traffic when as an effect of global warming in the summer there is the chance of using this seaway for a couple of weeks, thus connecting the markets in Europe and Asia

Question: Is drawing attention to global warming an aspect of this journey? Stolberg: This is not our intention nor does it reflect our business. My personal opinion is that global warming and climate change, obviously, are developments with some negative effects. However, the melting ice in the Northeast Passage and thus the possibility to transit through this passage for commercial purpose has positive effects, too. This development enables shipping companies to reduce bunker consumption and as a consequence CO2 and other emissions as well which, in turn, are small factors to limit the scope of the global warming.

Question: Do you think many other ships will be taking this Arctic short cut? Stolberg: The possibility to transit the Northeast Passage in combination with the cargo flow between Europe and Asia is a major reason and motivation why the Northern Sea Route will become even more attractive for shipping companies. So, it is our goal to utilise this seaway regularly, if possible, and we could imagine others will follow our example. You also have to have appropriate modern vessels, you have to have an experienced team of experts on board and all behind in the onshore offices and you have to be granted permission by the authorities.

What’s nature worth? Financial crunch may bring rethink

Would you pay $1,000 a year for a remote patch of mangrove swamp?

Maybe not — but more and more environmental economists are arguing that you should.

And they say that the worst financial crisis in 80 years could be a good opportunity to overhaul the world’s economic system and put a price tag on what are often viewed as “free” services from nature, ranging from coral reefs’ role as nurseries for fish, to wetlands’ ability to purify water. See the story here.

Markets failed to regulate banks in the current crunch and they are doing even less to slow global warming that the U.N. Climate Panel projects will bring far bigger economic problems — more droughts, floods, heatwaves that disrupt food and water supplies and rising seas that could swamp low-lying coasts from Bangladesh to Florida. 

In a 2006 report into the costs of global warming, former World Bank chief economist Nicholas Stern said: “Climate change is the greatest market failure the world has ever seen.”

Of course it’s hard to place a fair value on the natural world. What’s the value of the mid-Atlantic Ocean? What would you pay to try to stop the accelerating melt of Arctic sea ice in summer? What’s the price of the Amazon rainforest’s ability to soak up greenhouse gases?

Governments have often given up such debates in despair and concluded that nature’s services as either free or infinitely valuable: without nature, after all, none of us would be here. But more and more experts say a wider system of price tags on nature are a first step to slow damage.