shipping industry
Shippers have always faced uncertainties in their chosen industry. This is not entirely unexpected when 80-90% of goods move by ship. But climate change is amplifying the level of risk faced by the sector in such concerns as fuel costs and route planning to name but two.
Changes in sea level and the increasing number of natural catastrophes have come together to bring about an upturn in the losses experienced by shipping companies due to damage to goods and/or ships and deviations in routes undertaken. It has to be said, though, that some route alterations have impacted businesses and individuals depending on the sea for their shipping jobs in a positive way.
One of the most obvious consequences of climate change is the rise in ocean temperature and this has had the knock-on effect of melting the polar ice. This has meant there are now new route openings for the shipping industry. Two of these are the Northern Sea Route and the Northwest Passage.
The Northern Sea Route will be pretty much ice-free by 2030. This route travels along the Russian border and one day shippers will be able to cut down the distance traversed between East Asia and Europe by 9000 km on a one-way trip. Two weeks will be consequently cut off the journey time. Locals may have cause for concern in this matter, environmental fears being top of the list.
The Northwest Passage offers advantages with regard to sailings from Canada through the Bering Strait connecting the Pacific and Atlantic Oceans.
Companies will have to account for the amount of ice melt before navigating these routes as seasonal variations will have to be considered. Such a journey will not be without its risks as search and rescue facilities will not be wholly available at first, notwithstanding the changes from month to month of the amount and location of the ice itself.
Climate change has meant a lack of rainfall around waterways such as the Panama Canal which has implied difficulties allowing access to large vessels due to the locks not being able to replenish the fresh water lost during every passage. Container ships may have to carry fewer containers to decrease the overall effect they have. The current wait time varies between vessel type but can be one week or more. This does depend on which direction you are going in but is a consideration shippers will have to embrace when planning sailings.
Observers will be taking account of sea level rises with regard to port and coastal infrastructure safety as flooding will be a possibility. Alterations in ship design to withstand adverse weather conditions will become an issue.
The opening of a Northern Sea Route will bring about its own problems as, already, eight countries claim territories in the Arctic Circle. Questions may arise as to who owns the route.There will have to be debates over who controls the support services and infrastructure along the route, and the environmental impact will have to be monitored as marine life and ecosystems may be damaged.
Striving to adjust to the changing risks and the pricing policies within the industry will be uppermost in shippers' minds with regard to the effects of climate change, but this will have to be a consideration in a none-too-certain world.
