ABSTRACT
This chapter analyses the way an ice-class 1A reacts to change in climatic and market conditions and determines the monthly Northern Sea Route (NSR) viability when sailing through the Arctic. It presents a literature review on the main factor affecting the NSR viability. The chapter aims to develop a model to show how economic and climatic conditions affect the shipowners’ profitability and how speed has to adapt to the ice conditions in order to maintain a safe navigation. It provides the model to a business case relative to the voyage of a 1A Ice-Class Panamax oil product tanker sailing from Murmansk to Daesan. The profitability of the Arctic navigation depends on numerous economic parameters that are impacted by climatic conditions. Technical elements to ensure safe navigation within the Arctic also impact Capital and Operational expenditures as well as voyage costs. The NSR attractiveness changes with the type of cargo and shipping operational features.
