[Q&A] "Pilot Navigation of the Arctic Route: Top Priority Is Verifying Economic Feasibility"

Panstar Acro Sets Sail from Busan New Port on August 22

First Korean Container Vessel to Navigate the Arctic Route

35% Shorter than Suez Route, Cuts Travel Time by 10 Days... Lower Operating Costs

The Panstar Acro, which will operate on the Arctic route—the shortest path connecting Korea and Europe—will depart from Busan New Port on August 22. This marks the first time a Korean container vessel is attempting the Arctic route. Using the Arctic route can shorten the distance by 7,000 km compared to the existing Suez Canal route, thereby reducing fuel consumption and operating costs. Ultimately, the key objective of this pilot voyage is to secure data regarding sailing distance, duration, fuel consumption, and operating costs needed for commercial use of the Arctic route, in order to verify its economic feasibility.

On August 20, Sooho Lee, Head of the Arctic Route Promotion Office at the Ministry of Oceans and Fisheries, held a briefing at the Busan office and stated, “This pilot navigation of the Northeast Passage is the very first step to test the commercial, technological, and environmental possibilities of the Arctic route using an actual vessel and cargo,” adding, “We plan to comprehensively check all necessary elements required for commercial use of the Northeast Passage.”

On the 20th, Sooho Lee, Head of the Arctic Route Promotion Office at the Ministry of Oceans and Fisheries, held a briefing at the Busan office to explain the pilot navigation of the Northeast Passage. Photo by Joint Press Corps

The following are key excerpts from the Q&A session between Head Lee and reporters.

▲ What is the purpose of this pilot navigation along the Arctic route?

= The primary aim is to comprehensively assess the route’s commercial viability by analyzing relevant data. As this is the first attempt with a container ship and the first navigation along this route in over a decade since 2016, confirming the safety of the sailing route is of utmost importance. Secondly, we will conduct an overall analysis by comparing the sailing distance, transit time, and fuel consumption with those of the existing routes. Additionally, it is important to determine whether reliable on-time operations can be ensured, as well as to address matters related to insurance and vessel maintenance and operation.

▲ What are the variables affecting navigation along the Arctic route?

= Based on the current environment of the Arctic route, both the shipping line and the Ministry of Oceans and Fisheries believe there should be no major obstacles to this pilot navigation. While certain variables could emerge, we plan to respond promptly through continuous 24-hour monitoring, all while adhering to relevant international conventions and global standards.

▲ A significant portion of this route passes through Russian straits. There are concerns about violating Russian sanctions.

= Although I cannot provide specifics, we have explained the objectives, necessity, and plans for the Northeast Passage pilot navigation to the major related countries and completed the necessary consultations to ensure compliance with relevant international norms.

▲ The Panstar Acro has a total capacity of 2,758 TEU, but only 837 TEU—including 737 TEU of cargo and 100 empty containers—will be loaded upon departure from Busan New Port. Isn't that too little?

= During the pre-voyage cargo demand survey conducted around June of this year, we projected a demand of 1,300 TEU. However, some time was needed to prepare the vessel, and the actual preparation period was rather short, so we are departing with a smaller volume than the actual demand. Various types of cargo—including chemicals, used cars, and automobile parts—will be shipped aboard. Even securing this amount of cargo is significant for a first voyage. For subsequent operations, we will cooperate with the shipping line to identify suitable cargo demand. On the return leg, in line with the typical cargo flow between Northeast Asia and Europe, we expect to bring back around 1,300 empty containers, as container repositioning mostly occurs on the return route.

▲ What about the economic feasibility of this pilot voyage?

= There are limitations in judging overall economic feasibility based solely on this first trip. Conditions for regular service must also be considered. After the Panstar Acro returns to Busan, we will carry out a comprehensive review, analyzing the types and volumes of cargo transported, as well as actual freight rates obtained. Return voyage sales activities are still underway locally, so it is difficult to make any assumptions before departure. We will disclose the economic review after the vessel returns.

This content was produced with the assistance of AI translation services.