Zhou, Xuelian and Hu, Maixiu
(2023)
Development potential of the Northeast Passage based on a multinomial-logit-based stochastic user equilibrium model.
Advances in Polar Science, 34 (1).
pp. 45-55.
Abstract
We developed a multinomial-logit-based stochastic user equilibrium (MNL SUE) model incorporating time value of cargo to investigate future proportions of cargo flow through the Northeast Passage (NEP) and the Suez Canal Route between representative ports. We studied navigation during the ice-free and ice-covered seasons using sea ice projections for 2070 based on 1991–2021 NEP ice data. Sailing distance and time between selected ports are lower via the NEP than the Suez Canal Route. Under the scenario of year-round operation of the NEP, the proportion of cargo flow through the NEP is estimated to be 68.5%, which represents considerable commercial potential. Proportions are higher for the ice-free season and for ports at high latitudes. We also assessed flow under different scenarios. Under the scenario of fuel price increase, proportion of flow through the NEP in the ice-covered season is expected to increase. If time value is ignored, flow through the NEP is expected to increase all year round. If shippers become more cost-conscious, flow through the NEP is also expected to increase.
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