Nordic Exceeds Plans for Northern Sea Route Journeys

Managing Director Christian Bonfils says Nordic will use the NSR again next year

In its third year using the Northern Sea Route (NSR) along Russia's Arctic coast, Nordic Bulk Carriers A/S (Nordic) has completed more journeys than it originally anticipated, Managing Director Christian Bonfils has told Ship & Bunker.

"So far we have done eight transits and we have two left, so we will do 10," Bonfils said.

The company said in June that it was planning six to eight journeys this year.

Nordic had predicted savings of up to $5.2 million by using the NSR instead of sailing through the Suez Canal, mainly due to the shorter journey time.

Bonfils said the company has saved about 40 percent of fuel costs, as expected, though he said he couldn't put a precise dollar figure on the cost difference yet.

The route also avoids paying the Suez Canal toll, as well insurance being less as it avoids high risk piracy areas, although those savings are offset at least in part by icebreaking fees.

Nordic began using the NSR in 2010, becoming the first operator to do so, and it has increased the number of journeys on the route since then.

Bonfils said this year is the first time it has used four ships on the route, and it intends to do the same next year.

"We have almost reached maximum capacity this year," he said.

Bonfils said Nordic saw more ice than it expected at the start of the season in July, but that didn't have a major impact on operations, and it still plans to start using the route around the same time next year.

Nordic uses the NSR to ship iron ore from northern Norway to China, and Bonfils said its operations got a boost this year because it was able to carry more cargo on East-West trips as well.

Commenting on the Route last year, Bonfils said "it is safer, shorter and thereby more eco-friendly."