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South Korean container ship to test Arctic route from Europe amid Western concerns

South Korea will flag off a container ship bound to Europe via the Arctic on Saturday, testing if a route made possible by melting sea ice is commercially viable. However, the trip requires Russian cooperation, which could cause friction with Western allies.

The 'trip' would be South Korea’s first commercial voyage via the Arctic to Europe, if it is successful. It will join China and Russia as the only countries that have run or tested cargo services on this route. PanStar Acro, which will depart from Busan and sail north, will stop at Felixstowe, Britain, Rotterdam, Netherlands, and Gdansk, Poland, before returning. The journey is expected to last 40-45 days.

The Arctic sea ice will be at its lowest level for the year around September, which is when the majority of this journey will take place. This makes navigation safer, said an official from the group, who spoke on condition of anonymity because he wasn't authorized to speak to the media.

President Lee Jae?Myung made Arctic shipping his top priority. Officials said it could transform the port of Busan in the southeast into a global hub for maritime traffic and make the Arctic a regular route to trade by 2030.

WESTERN DIPLOMATS NOT HAPPY WITH PLAN

Western diplomats are not happy with the plan because it requires Seoul to consult Russia in order to obtain permits for the ship’s voyage.

One European diplomat said, "We don't want engagement with Russia. We want to isolate Russia." Citing Russia's conflict in Ukraine, the diplomat added that his concerns were expressed to South Korean officials. Arctic shipping experts have also said that South Korea may be in danger of violating sanctions if it asks Russia for help with problems on its route, like getting stuck in the ice. The South Korean Oceans Ministry, and the Russian Foreign Ministry have not responded to requests for comments.

FASTER MELTING SEA ICE MAKES ROUTE ATTRACTIVE This summer, the Northern Sea Route is more attractive due to the faster melting of Arctic sea ice attributed by global warming. The Norwegian tracking foundation Centre for High North Logistics said that 88 vessels transited the NSR in 2013, up from 43 in 2022 and 97 in 2024. This is mainly due to nations like Russia and China.

The Oceans Ministry of South Korea said that the Arctic route would shorten journeys up to 35% compared to the traditional Suez Canal and use less fuel. Commercial feasibility may be more difficult to determine.

Hyewonchoi, an ex-navy officer, said that factors like vessel size limitations and insurance costs swelled the unit?transport costs on the Arctic route.

He said that container ships can only use the NSR during the summer months, when the ice is melting. PanStar was selected in a government-backed bid for the pilot trip. It bought a 2,700 TEU (Twenty Foot Equivalent Units) container ship that HMM is currently modifying for polar navigation. The crew includes 20 Koreans and Indonesians.

The company said it was looking for at least 1,300 TEUs of cargo, including automobile parts, cosmetics and food, as well as shipments from China, and Japan. Clients from Japan have expressed interest.

FIRST-MOVER AVANTAGE

The PanStar official stated that China was 'already trying to gain first-mover advantages on the route. This makes a South Korean trip more urgent.

"Korea needs to start accumulating data and operating experience that it did not have before, in order to achieve the national goal of commercial service by 2030." The Russian operator of the NSR says that the Chinese container company Sea Legend Shipping will launch the first regular service for containers to Europe via this route.

(source: Reuters)