You Need To look Beyond The News Stories
The Flying Fish which is a vessel registered in Panama owned by a Hong Kong based shipping company sailed from St Petersburg in Russia Shanghai via the Norwegian coast across the Northern Sea Route ending in Shanghai. What s important about this voyage is this crossing knocked 14 days off it's transit time. Not only did the vessel owners save on the Suez Canal fees they also saved on the ships expenses which average $10.150 per day saving an extra $142K.
What is unique about this voyage is the size of the containership carrying just under 5K containers versus the average on this route being far smaller carrying under 2K containers.
The problem is if we look at the map highlighting the number of ships using the route they are few and far between. The risk is just too high for now with very few support vessels on hand if called upon. Back in October of 2021 who can forget the ships trapped in ice that took many months to rescue so the window is not a big window. If the route was open like they say it has been then why are shipping companies still avoiding it? Possibly a backlash from their governments for using the Russia services due to sanctions.
There are news reports that Russia has been supporting the Houthis by supplying armaments in attacking Western shipping sailing through the Red Sea. This war we are seeing in Israel ad the Middle East is a lot more complicated if we look at who benefits.
If this is true and the Houthis escalate the situation even more then I still do not see the NSR benefitting from more traffic. If the NSR was safe and assessable like the Russians say then why is it the odd ship being reported on and not fleets of ships.
Russia would like the Suez Canal out of action so shipping companies would either be forced to sail around Africa or start to use the Northern Sea Route. Nothing would surprise me if these reports are true as this is all about revenue and manipulating the situation. Having the world trade route running through your back yard gives you so much power and control which Russia desires because things like sanctions could never happen.
Ships have to turn off their Automatic Identification System (AIS) Transponders as this gives heir exact satellite positions or risk being shot.
If Iran's oil and gas exports were shut down who benefits from this and Russia is definitely a beneficiary. Iran GDP is made up of nearly 60% with oil and gas of which 40% is going to China. Russia would like nothing more than China to increase their fossil fuel purchases bolstering their economy.
Posted Using InLeo Alpha
