Routes through the Arctic remain a niche solution

Arctic shipping routes can significantly shorten the distances between Asia, Europe and North America, but remain limited to specialised traffic due to high insurance costs. This is shown by an analysis from the French private credit insurer Coface (Compagnie française d’assurance pour le commerce extérieur).

Depending on the route, up to 40% of the distance can be saved, but insurers can levy surcharges of around 40% on premiums. Reasons include extreme ice conditions, remote regions and challenging operational conditions. In comparison, the risk premium for the Suez route before the attacks in the Red Sea was significantly lower at 0.07%.

The economic viability of Arctic routes is therefore limited. They are particularly suitable for bulk goods, especially liquid bulk cargoes, while other segments benefit less.

Additionally, environmental aspects such as oil spills, emissions, and noise pollution complicate broader usage. Thus, Arctic shipping remains a specialised option for the time being.