Korean Arctic Run on Two Routes
The North Observer previously covered the Republic of Korea’s Arctic policy in three publications, which outlined a well-thought-out strategy by the new generation of Korean leadership to use the Northern Sea Route as a national idea and a unique driver of economic growth for the country, which has recently been faltering due to the exhaustion of the previous economic model and growing competition from the powerful economies of several Southeast Asian countries.
BACKGROUND
For a number of reasons, primarily domestic and, since 2022, foreign policy, Korea has failed to become a regular operator of the Northern Sea Route, despite successful and commercially viable test voyages of five vessels since 2013.
However, mechanical engineering products from Korean factories were first delivered to Russia four years before the first Korean vessel’s passage.
A new milestone for international shipping on the NSR came in 2009, when two heavy-lift carriers, Beluga Fraternity and Beluga Foresight, belonging to the German company Beluga Shipping, delivered several heavy power-plant modules produced in South Korea to the port of Yamburg in Ob Bay.
Until recently, the Republic of Korea’s sovereignty, limited by the American military presence and its Western affiliation, was a constraint on its use of the Northern Sea Route.
Korea was able to accelerate its use only after a change in political leadership, which recognized its lag behind more powerful economies, primarily China, which is likely to transition to regular Arctic commercial shipping this year.
As follows from the text below, Korean politicians and businessmen plan to use not only the Northeast Passage (Northern Sea Route) but also Canada’s Northwest Passage for rapid cargo shipping by sea, an agreement reached less than a month ago with a Dutch shipping company.
Essentially, this represents a transit competition between Canada and Russia, in which the convenience and safety of these routes, the speed and cost of cargo delivery, and the year-round or seasonal nature of commercial shipping will play a decisive role in the competition for cargo traffic.
The North Observer will follow the results of the Korean vessel’s test voyage and report on them in six weeks, when the voyage concludes.
Preparing for Sailing in Arctic Waters
The Ministry of Oceans and Fisheries has been preparing for a trial voyage on the Northeast Passage, aiming for a departure between August and September of this year, in collaboration with the Public-Private Council for the Revitalization of the Arctic Route, which was launched last January.
Previously, five trial voyages via the Arctic Route were conducted, starting with Hyundai Glovis (oil tanker) in 2013 and ending with Pan Ocean (heavy cargo carrier) in 2016; however, these operations were halted due to the uncertainty of year-round operation. The reason for resuming trial voyages after 10 years is economic feasibility. As the Arctic ice melts faster due to climate change, the shipping lanes of the Arctic Route have also expanded.
Accordingly, the Korea Ocean Business Corporation and the Korea Shipping Association selected Panstar Line.com Co., Ltd. as the pilot voyage operator through a public bidding process last May. Since then, the Ministry has worked with the shipping company and relevant agencies to prepare for the actual operation, including securing vessels and cargo, staffing, insurance coverage, and establishing emergency response systems.
In addition, consultations with key countries and relevant agencies have been completed to implement administrative procedures necessary for the operation and to ensure compliance with international norms.
This voyage marks Korea’s first trial operation of a container ship on the Northeast Passage. As it also marks the resumption of Northeast Passage operations by a Korean shipping company for the first time in 10 years since 2016, the Ministry of Oceans and Fisheries has prepared for the trial operation in collaboration with the shipping company, placing safety as the top priority.
The Ministry of Oceans and Fisheries announced on August 20 that the 2,758 TEU container ship Panstar Acro is scheduled to depart Busan on August 22, travel through the Northeast Passage, and call at Felixstowe, UK; Rotterdam, Netherlands; and Gdansk, Poland in succession before returning. The total estimated sailing period is 45 days.
Among the Arctic routes, the Northeast Passage is a section of approximately 5,600 km extending from the Bering Sea near Alaska to the Barents Sea in the west. As a route that crosses Russia’s territorial waters and exclusive economic zone, it has been assessed as having the greatest potential for activation.
The Korean Ship Sets Sail
According to the Ministry of Oceans and Fisheries, the 2,758 TEU container ship Panstar Acro departed Busan New Port around 9 p.m. on August 22. One TEU represents one 20-foot container.
According to ship position data, the Panstar Acro passed the waters east of Ulleungdo at around 5 p.m. on August 23 and is heading northeast toward the Tsugaru Strait in Japan at a speed of 16.2 knots. Its next destination is Felixstowe Port in the United Kingdom.
The Panstar Acro is scheduled to enter the Northeast Passage, which runs along the northern coast of Siberia, Russia, around August 30, and pass through the Arctic waters by September 7.
The estimated time of arrival (ETA) for Felixstowe Port currently displayed in the vessel information is around 5:33 a.m. on September 13 (local time). Since the original plan announced by the Ministry of Oceans and Fisheries on the 20th scheduled the vessel to enter Felixstowe Port around September 9, there is a possibility that the schedule for the first European port call will be slightly delayed if operations proceed according to the current information. However, the ETA is subject to change depending on navigation and weather conditions.
After completing its calls in Europe, the ship plans to return to Busan New Port around October 5 via the Northeast Passage. The total sailing period is approximately 45 days, and the distance covered in the Arctic Ocean section is about 6,400 km. The actual schedule may vary depending on weather conditions and sea ice conditions in the Arctic region.
Checking the Feasibility of Using the Northern Sea Route
The Panstar Acro is carrying a total of 837 TEU, including 737 TEU of export cargo from 85 shippers and 100 TEU of empty containers. The main cargo consists of chemical products, used cars, auto parts, and metal products.
The reason the Arctic route is attracting attention is that it can reduce sailing distance and time between Asia and Europe. According to the Ministry of Oceans and Fisheries, if the Northeast Passage is used, the distance from Busan to Rotterdam is approximately 13,000 km, which is about 7,000 km shorter than the existing route passing through the Suez Canal, which is about 20,000 km. The estimated sailing period is also about 20 days, which is about 10 days shorter than the Suez route.
According to existing research, if a cargo ship departing from Busan Port passes through the Northeast Passage instead of the Suez Canal to reach Rotterdam Port in the Netherlands, the sailing distance can be reduced by up to 40 percent (approximately 7,000 km), and the transit time can be shortened by more than 10 days. Fuel costs are also reduced. According to an analysis by the Korea Maritime Institute, the cost of a single voyage from Busan to Rotterdam, Netherlands, via the Northeast Passage is $3 million (based on summer rates), which is approximately 22 percent cheaper than the Suez route ($3.83 million).
However, operating conditions on the Arctic Route can vary significantly depending on sea ice and weather conditions. The Panstar Acro is equipped with ice-strengthening capabilities that allow it to navigate even in ice-covered waters. The captain and navigators on board have completed specialized training for polar navigation, and an active navigator from the icebreaker Araon, who has experience navigating in polar regions, has also boarded as first officer.
Lee Soo-ho, Head of the Arctic Route Promotion Headquarters at the Ministry of Oceans and Fisheries, explained:
“By transporting actual cargo, we will verify the technological, environmental, and commercial potential of the Northeast Passage, as well as the demand for its use from shippers and logistics companies.”
The Ministry of Oceans and Fisheries maintains a 24-hour communication system with the vessel during the trial operation. Through this voyage, the Ministry plans to secure data on actual sailing distance, duration, fuel consumption, and operating costs to analyze the economic feasibility and safety of the Arctic Route.
The government aims to launch commercial operations on the Arctic Route by 2030 following the continuation of the trial operation. However, as the Northeast Passage passes along the Russian coast, diplomatic variables such as cooperation with Russia and international sanctions are also cited as challenges that must be resolved during the commercialization process.
Korea Will Put Its Arctic Eggs in Two Baskets
The government is also pursuing international cooperation to assess the feasibility of utilizing the Northwest Passage, which passes through northern Canadian waters, as part of the Arctic shipping routes.
On August 5, the Ulsan Port Authority (UPA) signed a trilateral written agreement with global shipping company Royal Wagenborg and the Korea Ocean Business Corporation (KOBC) to promote the Arctic Route. Royal Wagenborg is a Dutch shipping company with a track record of 48 commercial cargo shipments via the Northwest Passage (NWP) as of 2025.
Based on this, they plan to expand cooperation by sharing polar navigation information and operational experience, and jointly identifying cargo demand that can be transported via the Northwest Passage.
This agreement was pursued to explore the potential for commercializing the Arctic Route using Ulsan Port as a base and to diversify the maritime logistics network connecting Korea and the North American East Coast.
The three organizations plan to cooperate on: expanding calls at Ulsan Port for Arctic Route vessels and increasing the supply of eco-friendly fuel; exchanging operational information and experience; developing domestic Arctic Route operation manuals and accumulating know-how; identifying potential cargo demand between Korea and the North American East Coast; and securing ice-strengthened vessels suitable for Arctic Route navigation.
In particular, up to four vessels transiting the Arctic route are scheduled to call at Ulsan Port this year for refueling and cargo handling. The three organizations plan to compile the operational experience gained during this process into a manual and share it to strengthen the Arctic navigation capabilities of domestic shipping companies and ports. The Korea Ocean Business Corporation is also pursuing the production of a white paper on the Arctic route.
Byun Jae-young, President of the Ulsan Port Authority, stated, “By combining Ulsan Port’s infrastructure with the expertise of our partner companies, we will contribute to enhancing the Arctic navigation capabilities of the domestic shipping industry and the competitiveness of the port.”
Meanwhile, Ulsan Port has recorded a total of 18 calls by vessels navigating the Arctic route over the past decade, including 5 calls via the Northeast Passage and 13 calls via the Northwest Passage. It handles approximately 160 million tons of liquid cargo annually.
Sources:
- Chosun Biz (in Korean)
- KSM News (in Korean)
- Ministry of Oceans and Fisheries (in Korean)
- JoongAng Ilbo (in Korean)
- JoongAng Ilbo (in Korean)
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