Going our own way

Reducing costs by 40 percent: the first cargo has arrived in Belarus via the Northern Sea Route (NSR)

The market for transportation and logistics services has recently undergone a significant transformation. Geopolitical processes and sanction restrictions have led to the disruption of traditional supply chains and to the reshaping of logistics, becoming a new growth point for Belarus and Russia. Due to Western policies, the ports of Ukraine and the Baltic States, through which Belarusian goods were previously delivered, are now inaccessible to our country. Consequently, alternative routes — particularly the Northern Sea Route — are being actively explored. Given the advantages and speed of cargo transit to Asian countries, primarily China, the prospects on this route appear quite promising.

First cargo arrived

September 30th, 2024 went down in the country’s history as the date when the first cargo arrived via the Northern Sea Transit Corridor (NSTC). A batch of goods intended for Belarusian business entities was shipped from the port of Shanghai in August 2024. The container ship passed through the seas of the Arctic Ocean, bypassing the territory of the Russian Federation via the NSR, and arrived at the port in Saint Petersburg, from where it was transported by road to the Mogilev-Beltamozhservice transport and logistics centre. The transit time was 35 days, as noted by Anton Prokhotsky, leading logistics specialist in the department of transportation and expedition services at Beltamozhservice, “In August, the container was loaded onto the vessel and began its movement on the route Shanghai — Saint Petersburg. Subsequently, the container was transferred to our vehicle and arrived at the distribution centre. The main advantage is the timeframe. It has been reduced by 1.5 times. We are passing through the maritime territory of Russia. All this reduces financial costs.” 
It should be noted that the logistics operator worked out the technical capabilities for the delivery of export and import goods between Belarus and the People’s Republic of China using the NSTC infrastructure at the beginning of the year. This intermodal delivery method can become an alternative to the existing Southern Sea Route, which runs through the ports of the Pacific and Atlantic Oceans and lasts about two months. The NSTC capabilities have been used by Belarusian enterprises for the first time, and the current trial shipment has launched a new logistics service that, despite the navigation period, will be in demand by businesses, as pointed out by Aleksandr Skachkovsky, First Deputy General Director at Beltamozhservice, “The trial batch is cargo for a Belarusian enterprise. It is expected that this route will be in demand in the future. Any business entity can deliver any product to the territory of China and from China to Belarus via this route. The navigation period lasts more than six months, while the use of icebreakers will allow for year-round operation. Economic entities will be able to plan their deliveries systematically through the infrastructure of the Russian ports in St. Petersburg and Arkhangelsk. This indicates stability, and stability means development. Container ships can simultaneously carry up to 5,000 containers.” 

Obvious advantages

Today, Europe and Asia are connected by only two maritime routes: through the Suez Canal and across the northern seas. The distance from Murmansk to Shanghai is 7,000 nautical miles, while the route via the Straits of Gibraltar and the Suez Canal is 12,500 nautical miles. Experts have calculated that under favourable conditions, the journey from Europe to China via the Northern Sea Route will take 25 days, and the vessel will consume approximately 600 tonnes of fuel. The alternative route will take more than a month and require 900 tonnes of fuel — this is more expensive than the route through the Arctic, on average by $1 million. 
Secondly, the Northern Sea Route is much more convenient than the route through the Suez Canal due to the absence of fees for passing through the canal. Another benefit is that it has no queues. In addition, it is maximally safe and allows for the delivery of various types of goods. All this features make the NSR appealing for Belarus, as well. “The Northern Sea Route is one of the promising transport corridors. It allows for a 40 percent reduction in time costs when delivering goods from the People’s Republic of China to the Republic of Belarus and vice versa, compared to the traditional southern route,” concluded Aleksandr Skachkovsky.

OPINION

Valery Bainev, Doctor of Economic Sciences,  
“The economic war declared by the West against Belarus has led to a complicated, or rather blocked, exit for our goods from the Baltic Sea today. Western countries hoped that this would paralyse Belarusian exports. However, they significantly miscalculated. Apparently, they did not study geography well. They forgot about the existence of the Northern Sea Route, which is quite promising. We can see the efforts being made by the Russian Federation to enhance navigation along the NSR. An icebreaker fleet is being built, and navigation is being developed. Thanks to this, the delivery of Belarusian goods to Southeast Asian countries and the People’s Republic of China will be much quicker and cheaper. Overall, Belarus’ access to the Arctic Ocean and the creation of its own port facilities there will eventually provide serious support for strengthening trade relations with Asia, while the expertise of our industrial specialists will improve the infrastructure of the trade route. True, the route navigates through the seas of the Arctic Ocean, which are covered in ice during the cold season. Yet, with the use of icebreakers, vessels will operate year-round.”  

FOR REFERENCE 

The Northern Sea Route is a shipping route that runs along the northern shores of Russia across the seas of the Arctic Ocean — the Barents, the Kara, the Laptev, the East Siberian, the Chukchi, and the Bering — connecting the ports of the Russian Federation in Europe and the Far East, as well as the mouths of navigable Siberian rivers to make an integrated transport system. The NSR length from the Kara Gates near the Novaya Zemlya archipelago to Providence Bay near the Bering Strait is 5,600 kilometres. It was opened for international shipping in 1991. In 2023, the cargo turnover along the Northern Sea Route increased to a record 36.3 million tonnes, which is seven percent more than in 2022.

By Vladislav Sychevich