- An Azerbaijan-managed oil tanker, Prisma, is using the Northern Sea Route (NSR) to China, typically dominated by Russian ships.
- The NSR offers a shorter route but is costly due to the need for icebreaker services, making China the only economically viable destination.
- Russia’s Rosatom oversees NSR transit permits and provides icebreaker services to assist ships navigating the Arctic waters.
An oil tanker managed by an Azerbaijan-based firm, Vista Vvave Shipmanagement, is traveling the Northern Sea Route (NSR) to China for the first time. This route, traditionally dominated by Russian ships, is gaining attention due to its shorter distance from western Russian ports to Asia. However, challenges and high costs make it a complex option, reports Reuters.
The Prisma’s Journey
The tanker, Prisma, a nearly 20-year-old vessel with ICE 1C class certification, allows it to navigate through the Arctic with the help of icebreakers.
The Prisma loaded crude oil from Russia’s Baltic Primorsk port and is currently in the Kara Sea. It is sailing under the flag of the Cook Islands and owned by Evergreen Embrace Corp, a Seychelles-registered company.
Northern Sea Route (NSR)
The NSR stretches from Murmansk near Norway to the Bering Strait near Alaska. It offers a shorter alternative to the Suez Canal for ships traveling between Russia and Asia, but the route requires specialized assistance, like icebreakers, due to the harsh Arctic conditions. The NSR is only open for navigation between July and October, when Arctic ice thins out.
Increasing Traffic via NSR
Moscow is pushing for increased traffic along the NSR to compete with the Suez Canal. Six oil tankers carrying 600,000 metric tons of Russian crude oil have already taken this route to China this year.
Ships like the Olympiysky Prospect and others managed by Sovcomflot are also using the NSR to reach Chinese ports.
High Costs and Challenges
Despite the shorter distance, traders note that navigating the NSR is expensive due to the costs of icebreaker services and special approvals.
One source from the Russian oil market stated, “I’d rather spend more time en route and pay less than use the NSR, for which you have to receive specific approvals and pay for an ice-breaker service.” China remains the only destination where the NSR’s costs might be justified economically.
Russia’s nuclear company, Rosatom, plays a crucial role in NSR navigation, issuing permits for transit and providing nuclear icebreaker services based on requests from cargo carriers.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Reuters
