Generalized transport costs in intermodal shipping: the context of the Northeast Passage

Abstract

Abstract Intermodality is regarded as one way of achieving more sustainable transport solutions. To make intermodal transport the preferred solution among shippers, it must be attractive according to the concept of generalized transport costs. An extended model for generalized transport costs is developed which includes elements important for comparing maritime transport solutions in the Artic. This framework forms the basis for a principal discussion on the conditions that make one transport solution preferable to another within the context of maritime logistics. This model is then applied to the context of the Northeast Passage to discuss the necessary requirements for making an intermodal transport solution attractive relative to the current main route from Northeast Asia to Northwest Europe through the Suez Canal. Even though intermodality could be preferable in principle, current solutions cannot compete with either Arctic routes using unimodal solutions with high ice-class vessels or with the Suez route. Due to uncertainty and limited empirical evidence, a sensitivity analysis is conducted, focusing on the variables with the greatest impact on the result. Policymakers and stakeholders can consider the findings to improve transport competitiveness via the Northeast Passage.

Keywords

• Intermodal transport
• Generalized transport costs
• Arctic shipping
• Northeast Passage
• The Northern Sea Route