Economic Feasibility of the Northern Sea Route Designing & Managing the Supply Chain Term Paper -Proposal Woo Youn Ju

What is Northern Sea Route ?  Background  Glacier on the North Pole is melting because of the Global warming  The Northern west sea route and Northern east sea route are temporally opened at summer season (2~4 month)  Arctic may be changed to an island in 2020  Needs to prepare the commercial sea route Canada Russia Green Land Northern West Route Northern East Route

Example of the Northern Sea Route  Economic Effects  From Netherlands to Busan Current route: over 20,000Km and 24 days  NSR: 12,000Km and 14 days

Case: Shipping Line company  Analysis the economic feasibility  Prepare the icebreaker vessel Purchase an icebreaker vessel Remodeling the original vessel  Analysis the market share and decide the specific route Amount of Import and Export at each ports (Countries) Change or divide the routes  Save cost Short travel distance Oil price  Etc Weather effect – The possibility of keeping the due date

An icebreaker vessel

Previous researches & Difficulties  An Economic Viability and Feasibility Study on the Northern Sea Route and Ice Class Merchant Ships, Korea Maritime University Research Center, Joe sung chul,  Previous work is for development of the icebreaker vessel as a merchant ship.  The study of changing routes for specific shipping line company is not developed yet.  It is not easy to get the data of export/import TEUs and the price of the specific route because of commercial confidential.