Cnbc
@cnbc·4.2M subscribers·16.1K videos
Why The U.S. Is Falling Behind In Arctic Shipping
Posted
February 16, 2022
Views
314,297
Likes
4,019
Comments
761
Engagement
1.52%
February 16, 2022
314,297
4,019
761
1.52%
Every word spoken in this episode is indexed. Type any phrase to jump straight to the moment it was said.
Type any word or phrase that may have been spoken. Click a result to seek the player to that exact moment.
Try a name, a topic, or a quoted line
13:15Now PlayingArctic sea lanes might be ice-free in the summertime by 2035, according to scientists. That could mean faster global shipping times, and Russia and China are already taking the lead on their side of the frozen North. So why aren't the U.S. and Canada doing more?
Watch the video above to find out more about the opportunities and perils of increased Arctic shipping in what could be the world's next big economic zone.
Sick of shipping delays? There might be a faster way to ship supplies around the world in the not too distant future.
With melting sea ice in the Arctic, Russia and China are expanding their shipping infrastructure over the Eurasian continent. Last year’s Suez Canal incident, when a ship got stuck and blocked global traffic for several days, was seen as just the argument to entice businesses to explore using Arctic shipping routes.
“Many Russian officials are very quick to jump on the fact that Arctic sea routes are potentially much more useful for avoiding the kind of bottlenecks that one would see in either Panama or Suez Canal,” said Marc Lanteigne, associate professor of political science at the Arctic University of Norway.
China claims using the Northern Sea Route would shave almost 20 days off the shipping time now spent traveling through the Suez Canal.
But Arctic transit is no small feat and is still highly unpredictable. Captain Kenneth Boda took the U.S. Coast Guard cutter HEALY through the Arctic over Alaska and Canada this past summer.
“It can be extremely brutally cold in the Arctic and then you can have a beautiful sunny day,” he told CNBC from his captain’s quarters on the ship. The HEALY is one of two specialty ships known as icebreakers that the U.S. has to traverse the ice-clogged waters.
However, scientists are predicting that by 2035 Arctic sea lanes might be ice-free in the summertime.
While that could be good news for shippers, it is a real threat to the Native Arctic communities. Dalee Sambo Dorough, the international chair of the Inuit Circumpolar Council, told CNBC, “The idea that it can be traveled across in a smooth and relatively safe fashion, because there’s no ice, is very scary.”
Two of the largest shippers in the world, MSC and Maersk, told CNBC they’ve decided not to ship in the Arctic. MSC cited both environmental degradation and unpredictability issues, among other considerations.
Others, though, argue global environmental conditions could improve, with reduced carbon emissions from shorter transits.
“It’s really a question of saving shipping cost-saving time versus that lack of predictability,” Gabriella Gricius from the North American and Arctic Defense and Security Network told CNBC.
» Subscribe to CNBC
» Subscribe to CNBC TV
» Subscribe to CNBC Classic
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news
Follow CNBC on LinkedIn
Follow CNBC News on Facebook
Follow CNBC News on Twitter
Follow CNBC News on Instagram
#CNBC
Why The U.S. Is Falling Behind In Arctic Shipping
Sentinel Indexing in Progress
Metadata and chapters are available. Claim extraction for this episode is pending.
All video content is delivered via YouTube embedded players in accordance with the YouTube Terms of Service. Sentinel provides research tools that promote discovery and accountability across political media.
