Polar Silk Road will reshape trade and geopolitics

Subject

Shipping in the Arctic between China and Europe.

Significance

Climate change is leaving Arctic waters navigable for longer periods, opening a new shipping route from East Asia to Europe along Russia's northern coast. Dubbed the ‘Polar Silk Road’ (PSR) in China and 'Northern Sea Route' (NSR) in Russia, it could eventually become an alternative to the main Strait of Malacca and Suez Canal route, altering global supply chains and geopolitics.

Impacts

• The PSR's economic viability is premised on it being a reliable and safe route; that time is still far off.
• Melting ice will unlock new natural resources and commercial opportunities.
• The foremost use of the PSR initially will probably be for shipping resources extracted from the Arctic to markets elsewhere.