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The Opening of the Northern Sea Routes: The Implications for Global Shipping and for Canada’s Relations with Asia

All the excitement around the great possibilities that the opening of the Northwest Passage could
offer the shipping industry — and Canada — could not last. Just a few years ago, as sea ice in the
North seemed to be steadily melting away, observers were eagerly tallying up the savings in time,
fuel and costs that a reliably ice-free route across the top of the planet would provide for shippers.
A couple of trial runs only confirmed that for shipments from Asia to Europe or North America, or
the other way around, the route could shave thousands of kilometres off each trip, compared to
journeys through the Suez or Panama canals. Rapid growth in shipping traffic across the Northwest
Passage and its sister route, the Northern Sea Route, seemed not just inevitable, but imminent.
Just a short while later, it now seems neither imminent nor inevitable. The retreat in sea ice may
persist, but it is evident that due to regular fluctuations in ice coverage, the Northwest Passage
will not be reliably ice-free for many, many years, if ever. Shipping may be more possible through
the Northwest Passage than it was in the past, but it will not be consistently unobstructed. The
challenges of ice combined with Arctic weather conditions may well mean that any shipping
through the passage is slower than expected. Other complicating factors include uncharted or
poorly charted sea lanes and the difficulty in securing insurance for Arctic shipping.
At the same time, the competition from alternate routes is only becoming more intense, with
expansions in both the Suez and Panama Canals and the potential for a new canal across Nicaragua.
Regarding the Northwest Passage, Canada lacks much of the infrastructure in the North that
would make Arctic passage a strong competitor, including multiple ports enroute and sufficient
icebreaking equipment.

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