MSC Reaffirms Pledges to Avoid Arctic Shipping Route

Swiss shipping giant MSC Mediterranean Shipping Company is reaffirming its commitment to refrain from sending its ships through the Arctic, as discussions intensify around alternative trade routes to the Suez Canal in light of recent Houthi attacks.

The Arctic route offers both a shorter route between the Far East and Europe, as well as a way for vessels to bypass conflict zones in the Red Sea and the Gulf of Aden without detouring via the Cape of Good Hope. However, MSC reiterated on Thursday that it will not use the Northern Sea Route, a stance the world’s largest shipping line believes the entire industry should adopt.

Company President Diego Aponte initially made this pledge in 2019, citing environmental concerns, and reaffirmed it in 2021 following the Ever Given incident in the Suez Canal. The decision aligned MSC with other major shipping lines like CMA CGM, Maersk and Hapag-Lloyd, which have also previously committed to avoiding the Arctic route.

Climate Change and Red Sea Turmoil to Boost Arctic Shipping

Despite a steady increase in Arctic shipping driven primarily by Russian energy exports, container shipping interest remains minimal. Since Maersk’s first and only Arctic voyage in August 2018, most major container ship operators have publicly distanced themselves from Arctic shipping.

The non-profit Ocean Conservancy launched the Arctic Shipping Pledge in 2019, with 22 shippers and shipping companies committing to avoid the Arctic as of 2022, including 42.7% of the world’s liner fleet.

However, countries like Russia and China are increasingly taking advantage of the Northern Sea Route for container shipping. The route is expected to see its first Panamax container vessel, the 4,890-TEU Flying Fish 1, transit this summer. The vessel, serving as part of Hong Kong-based Safetrans Line’s Trans-Russia liner loop, will nearly double the previous size record set by the 3,600-TEU Venta Maersk in 2018.

The Chinese company NewNew Shipping also completed seven voyages through the Arctic with four feedermax ships during the summer of 2023. The company plans to expand to a dozen voyages this summer.

Bud Darr, MSC Group Executive Vice President for Maritime Policy and Government Affairs, noted that the situation in the Red Sea and drought-related restrictions in the Panama Canal have reignited the debate about the Northern Sea Route’s viability due to its shorter distances and fuel savings.

“We believe there’s no shortcut for the decarbonization of shipping,” said Darr, while also highlighting the operational and safety challenges of the route. “Arctic waters are extremely challenging to navigate due to ice, weather, lack of necessary chart information, and limited infrastructure. Search and rescue and pollution response assets are far away, and despite developments and collaboration in that area, our ships and crews would be more or less on their own.”

Darr also acknowledged the dependence of Arctic communities on shipping and stressed that MSC should not burden essential traffic with unnecessary transits. “MSC will not use the Northern Sea Route as a shipping lane, and we consider this a position the whole shipping industry should adopt,” he concluded.

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