Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Feasibility and implications of the Northern Sea Route choice: The role of commodity prices, in-transit inventory, and alternative operational modes for the oil product tanker market

Theocharis, Dimitrios, Sanchez Rodrigues, Vasco ORCID: https://orcid.org/0000-0003-3375-3079, Pettit, Stephen ORCID: https://orcid.org/0000-0001-7265-4079 and Haider, Jing ORCID: https://orcid.org/0000-0002-5550-1342 2022. Feasibility and implications of the Northern Sea Route choice: The role of commodity prices, in-transit inventory, and alternative operational modes for the oil product tanker market. Maritime Policy and Management 10.1080/03088839.2022.2119613
Item availability restricted.

[thumbnail of MPM Paper - Final.pdf] PDF - Accepted Post-Print Version
Restricted to Repository staff only until 25 April 2024 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial.

Download (1MB)

Abstract

The feasibility of the Northern Sea Route (NSR) is assessed against the established Suez Canal route (SCR) and the longer Cape of Good Hope route. The analysis reflects real practices of route choice for oil products between the Far East and Europe depending on varying market conditions. A required freight rate (RFR) model is developed based on both optimal speeds and real speeds. Automatic Identification System (AIS) data are used to identify route choice patterns and real speeds of Long Range 2 (LR2) tankers during 2013–2020. Cargo value on-board and alternative fuel types/modes based on oil, and current and future technologies of dual fuel Oil/Liquefied Natural Gas (LNG) are considered. Cape is a competitive alternative under low fuel/commodity prices, and its use is explained, especially during the oil oversupply in 2015–2016 and 2020. The NSR is more competitive when moving towards short-hauls, under high fuel/commodity prices, and discounted or zero icebreaking fees, but is uncompetitive most of the times when ice damage repairs are included in the model.

Item Type: Article
Date Type: Published Online
Status: In Press
Schools: Business (Including Economics)
Publisher: Routledge
ISSN: 0308-8839
Date of First Compliant Deposit: 9 August 2022
Date of Acceptance: 3 August 2022
Last Modified: 13 Dec 2022 19:58
URI: https://orca.cardiff.ac.uk/id/eprint/151702

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics