Chinese Ship Takes Arctic Shortcut, And It's Not About Trade Alone

China is about 1,300 kilometres from the Arctic Circle but it insists that it is a "near-Arctic state". The statement has begun to gain practical meaning after it stepped up its activity in the region, working with Russia on coast guard patrols, exploring resource and technology projects and has been testing a shortcut to shipping that could cut thousands of kilometres from journeys between Asia and Europe.

A Chinese cargo ship, the 575-foot Dubai Tower, is completing a three-week journey from Qingdao to Teesport in England. The same trip took 36 days last winter when the ship travelled through the Middle East.

The Northern Sea Route covers roughly 12,000 kilometres in three weeks and runs along Russia's northern coastline and across the Arctic Ocean.

However, the shortened transit route raises questions about whether China is leveraging this shortcut to advance its broader geopolitical strategy.

The Dubai Tower left China on August 19 carrying about 1,300 containers loaded with electric vehicles, batteries and other renewable energy equipment.

Sea Legend, a Chinese shipping company, plans to operate seven more Arctic trips apart from the Dubai Tower this season, according to a report by The New York Times.

Why The Northern Sea Route Is Not A Panacea For Global Shipping

Although the Northern Sea Route can cut around two weeks from an Asia-Europe journey and help ships avoid lanes affected by conflict in the Middle East, the route has its own set of problems.

The sailing can only be done during August and September with only limited opportunities around July and October. Ships sailing through the Northern Sea Route may also require icebreaker escorts to withstand Arctic conditions.

According to shipping experts cited in the report, although the Northern Sea Route could become more accessible because of climate change, the remote route carries risk which makes insurance costs higher and ultimately makes the route unprofitable.

How The Arctic Route Gives China Political Gains

Apart from logistics, there is also a political price to pay, as much of the route passes along Russia's northern coast, meaning companies using it have to pay Moscow access fees. That could make the route particularly difficult for Western companies amid sanctions imposed on Russia over its war in Ukraine.

China's has been intersted in the Arctic since the 1990s when it expanded its Arctic research efforts and conducted its first expedition to the North Pole. It has since promoted the idea of a "Polar Silk Road" linking China with European markets through Arctic shipping routes.

However, a study published by Harvard's Kennedy School noted that China's Arctic "overtures have been met with suspicion".

The Northern Sea Route gives Beijing another reason to deepen its relationship with Russia while establishing a presence in a region where it has no coastline of its own.

Moreover, since Russia controls much of the Northern Sea Route, more Chinese traffic means more revenue from access and services while strengthening a relationship that has become important to Moscow.