Japanese shipping companies are looking to reduce their reliance on the Suez Canal. They are stepping up their search for an alternative route connecting East Asia to key markets in Europe.
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Japanese transportation companies were already exploring alternative routes between East Asia and the critically important markets of Europe.
Growing instability in the Middle East is a factor, but Ever Given's owner Shoei Kisen Kaisha Ltd., based in Japan's Ehime Prefecture, is also deeply unhappy that it has been caught up in a legal battle over the accident.
An Egyptian court granted a request by the Suez Canal Authority for the 400-meter vessel to be held until the owner pays more than $900 million (€737 million) in compensation.
The ship had been chartered by Taiwan-based Evergreen Line for the journey from China to the Dutch city of Rotterdam and was under the control of a local pilot for the passage through the canal. But it blocked the route for six days, costing the authority millions of dollars as no other ships were able to pass.
If the owners are eventually forced to pay up, the biggest beneficiaries could be Russia and China, observers think.
Looking for alternatives to Suez
"It is certainly a very sensible move for Japanese companies to at least look into alternative routes, although they must remember that each of those will also have drawbacks," Yoshitsugu Hayashi, a professor of transportation policy and systems at Chubu University, told DW.
According to Hayashi, there are three alternative routes that are available to link East Asia with Europe, while a fourth is under development.
The first is a return to the journey around the Cape of Good Hope in South Africa, which was the route used before the 193-kilometer-long (120-mile) Suez Canal was completed in November 1869.
The obvious drawback is that it is significantly longer and therefore more expensive than the alternatives.
This route has become increasingly navigable thanks to a thinning ice sheet in the summer months. This is a side-effect of rising global temperatures as well as improved ship technology that enables vessels to operate in waters that are at least partially covered in ice.
There are clear benefits: the journey is cut from approximately 38 days to just 19 days, dramatically reducing the amount of fuel that is needed and the pollution that is emitted.
In 2010, just 11 ships completed the 3,500-kilometer journey along Russia's northern coastline. In 2020, that had increased to a record 133 vessels.
One study predicts that figure will rise to 500 transits a year by 2030 and 900 by 2050.
10 years of shipping through the frozen north
In 2008, ships were able to cross the Arctic Ocean for the first time, as ice cover melted. With the planet heating up, these seasonal shipping routes are open longer each year. What will that mean for Arctic wildlife?
Image: picture-alliance/dpa/D. Goldmann
Let there be sea
Once, only explorers in search of adventure or scientific discovery braved the icy heart of the Arctic. But the ice is vanishing. August 29, 2008 marked a turning point: For the first time, merchant ships could navigate both the Northeast Passage and Northwest Passage, without icebreakers. This ship-friendly period in summer has been getting longer and longer ever since.
Image: picture-alliance/Okapia/H. Kanus
Shortcut from the Atlantic to the Pacific
The 6,500-kilometer-long (4,000-mile) Northeast Passage leads from Asia, past Russia and Norway, and connects the Atlantic with the Pacific Ocean. The slightly shorter Northwest Passage runs past Canada toward New York. Both routes cross the Bering Strait and the Arctic Ocean. This is only possible if ice cover does not block the way.
Image: DW
Taking the long road
To get from Rotterdam to Tokyo, ships currently pass India and go through the Suez Canal in Egypt. That's about 6,000 kilometers longer than the route through the Northeast Passage. Ships travel to the US East Coast from Asia via the Pacific and through the Panama Canal. Here, too, taking the Northwest Passage cuts over 4,000 kilometers off the journey.
Image: picture-alliance/dpa/A. Shaker
Arctic pioneers
In 2009, the Bremen-based Beluga shipping company sent two German heavy-lift carriers through the Northeast Passage for the first time. Since then, shipping traffic in the region has increased. Still, Burkhard Lemper of the Institute of Shipping Economics and Logistics in Bremen says the Arctic Ocean is not (yet) heavily frequented — if only because the route is only open at certain times of year.
Image: picture-alliance/dpa/Beluga Shipping
Open water
No climate scientist can say for sure how global warming will progress around the North Pole. But, "Everyone agrees the Arctic will be ice-free within the next 30 to 50 years," says sea-ice expert Christian Haas of the Alfred Wegener Institute in Bremerhaven, Germany. Researchers describe the Arctic as ice-free when ice cover falls below 1 million square kilometers in summer.
Image: picture-alliance/dpa/D. Goldmann
Disturbing the peace
Biologists fear for the unique wildlife in the Arctic as shipping traffic increases. Beluga whales, Greenland whales and walruses, for example, could be a risk, US researchers say in a study published by the Proceedings of the National Academy of Sciences. They studied 80 populations of marine mammals and found that more than half are resident along the Northeast or Northwest Passage.
Image: picture-alliance/dpa/McPHOTO
Very special residents
Scientists fear that narwhals in particular could suffer from shipping traffic in the Arctic Ocean. The marine mammals stay close to coastal pack ice. The males are easily recognizable by their helical tusk, which can become up to three meters long. This is a life-size replica in the Ozeanum Oceanographic Museum in Stralsund, Germany.
Image: picture-alliance/dpa/S. Sauer
Antarctica as a model
Researchers and environmentalists are calling for guidelines on Arctic shipping. For example, ships should avoid the whales' main hunting grounds, fit sailing schedules around their migration, and keep noise and speed in check. "This does not yet exist in the Arctic — that's the big difference from Antarctica," Greenpeace biologist Christian Bussau says.
Image: Reuters/A. Meneghini
The calm before the storm?
According to Greenpeace expert Bussau, only 50 ships pass through the Northeast and Northwest Passage each year. The German Shipowners' Association says the figure is in the double-digit range. But Bussau says time is of the essence: "In the long run, there will be a lot going on in the Arctic." So far, there are no environmental regulations for shipping in the region.
Image: picture-alliance/dpa/D. Goldmann
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Russian and Chinese ambitions
Russia is also promoting the Trans-Siberian Railway as a direct link to Europe from its east coast port city of Vladivostok. The facilities are already in place, although there are concerns about the reliability of the Russian rail infrastructure. Nevertheless, Russian President Vladimir Putin appears to anticipate a windfall from the two potential routes.
In May 2018, Putin signed the executive order on national objectives for the coming six years, which included "reducing the time taken to ship containers by rail, in particular from the Russian Far East to Russia's western border, down to seven days, and quadrupling the volume of transit container traffic by rail."
The decree also calls for "developing the Northern Sea Route and increasing its cargo traffic by up to 88 million tons."
One Japanese company, Hankyu Hanshin Express, launched its rail transport service using the Trans-Siberian Railway in January. It pointed out that the route takes two weeks less than by sea and is half the price of air transportation.
Packages from Japan are shipped to Vladivostok and then put on a train to the Polish city of Kutno, from where they can be sent to other parts of Europe. Danish shipping firm Maersk operates a similar service via rail link.
China also has ambitions to become the trans-shipment point for goods traveling back and forth between East Asia and Europe. Its Belt and Road Initiative (BRI) including a number of transport infrastructure components.
Suez Canal: $10 billion in goods stuck in waterway
The container ship Ever Given has been blocking the Suez Canal for days. Economic fallout is already visible and it could take weeks — and require drastic measures — to free the waterway.
Image: Suez Canal Authority/dpa/picture alliance
Container ship still lodged in canal
Efforts to dislodge the Ever Given, a 400-meter (1,300-foot) container ship that has been blocking the Suez Canal in Egypt since Tuesday, are ongoing as excavators remove sand and mud from the ship's bow while tugboats try to move it. Japanese owner Shoei Kisen has asked for forgiveness and said the job was proving "extremely difficult."
Image: Suez Canal Authority/dpa/picture alliance
Could take weeks to refloat
Dislodging the ship is expected to take about a week, possibly longer, as news agency Bloomberg reported Friday. The Suez Canal Authority, which operates the waterway, has not provided an update on when the canal will be navigable once again. The container ship, which sails under Panamanian flag, is wedged diagonally across the vital transport link.
Image: Suez Canal Authority via Egyptian Cabinet Facebook Page/dpa/picture alliance
Hundreds of ships waiting
Economic fallout began as soon as the Ever Given ran aground, with the price of crude oil fluctuating wildly. At least 200 vessels are backed up at both ends of the canal — at Port Said on the Mediterranean and Suez on the Red Sea — as well as in the canal itself, according to Lloyd's List, a data analyst specializing in container traffic.
Image: Yan Liang/Xinhua/Zuma/picture alliance
Suez Canal (usually) saves ships time
The Suez Canal, which separates the continent of Africa from the Middle East and Asia, is one of the busiest trade routes in the world, handling about 12% of all world trade. The passage saves ships some 7,000 kilometers (4,300 miles) of travel compared to the route around the southern tip of Africa.
Image: Cnes2021/AP/picture alliance
$10 billion in goods are blocked
In addition to oil, consumer goods such as clothing, furniture and auto parts are transported through the canal. Richard Meade of Lloyd's List wrote on Twitter that westbound traffic was estimated to be worth about $5.1 billion (€4.3 billion) a day. Eastbound traffic is worth some $4.5 billion. This means that about $10 billion worth of goods are now blocked.
Image: Mohamed Abd El Ghany/REUTERS
Russia, Saudi Arabia particularly affected
"Every port in western Europe will feel the effects," said a spokesman for the Dutch port of Rotterdam, the EU's largest. Russia and Saudi Arabia, which send the most oil through the canal, are likely to be particularly affected. According to analysts at Vortexa, India and China are the largest oil importers using the canal. The blockade is also likely to be costly for the German economy.
Image: Suez Canal Authority/REUTERS
Worst-case scenario: Sink the containers
The Ever Given is one of the largest cargo ships in the world. If it ends up not being possible to refloat the boat, part of its cargo may have to be destroyed. According to Bloomberg, that could mean removing containers from the ship and possibly sinking them.
Image: Mohamed Abd El Ghany/REUTERS
More than 50 ships a day
According to the Suez Canal Authority, 19,000 ships passed through the canal in 2020 — more than 50 a day. Container ships account for about 26% of all traffic on the canal, which is dominated by oil tankers. In 2019, a total of 600 million tons of goods were transported through the Egyptian waterway.
Image: picture-alliance/dpa/A. Shaker
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Chubu University's Hayashi said promoting the Northern Sea Route and the Trans-Siberian rail link is a "very good idea" for Russia, which stands to earn a significant amount of money if enough companies adopt the routes.
Still, he cautioned that any courses that rely on Moscow or Beijing are "open to political and geopolitical struggles."
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'Tried and trusted' Suez
Stephen Nagy, an associate professor of international relations at Tokyo's International Christian University, said there are inherent risks for companies that deviate from the "tried-and-trusted Suez route."
"The Arctic shipping route cannot operate year-round, and the Trans-Siberian rail link simply cannot handle the volume," he told DW. "Yes, the Russians and the Chinese would very much like the economic opportunities that would come with these routes, but it would very much complicate Japan's diplomatic relations with the US, for example."
Mitsui OSK Lines, one of the largest shipping firms in Japan, was noncommittal on the issue of the Northern Sea Route, although it is clearly following the developments.
"That journey requires specialist vessels and it's very hard in the winter months, so we do not see it as an option at the moment," an official said. "But the route is becoming easier every summer, so perhaps it will be a possibility in the future."