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Maritime Logistics Professional

September 12, 2014

Arctic Shipping Routes: P&I Insurance FAQs

Arctic navigation: File photo

Arctic navigation: File photo

The UK P&I Club has compiled an FAQ which focuses on the implications for P&I insurance of choosing to use the Northern Sea Route.

The Northern Sea Route (NSR), or North East Passage, runs along the Russian coast from the Atlantic to the Pacific through the Kara, Laptev, East Siberian, and Chukchi Seas, having the potential to significantly shorten voyage times between European and Far Eastern ports. The exact routing is variable and depends on the time of the year, ice conditions, and the size and draft of the ship in question.

The route has long been used by Russian shipping for domestic purposes, but, with climate change reducing levels of Arctic sea ice, has been used for commercial voyages by international shipping since 2009 and numbers of such transits have steadily increased.

The route is administered by Russia’s Northern Sea Route Administration (NSRA) under laws that were most recently updated in 2013. The main season for transits when sea ice recedes is from late July to early November.

The Club advises its members contemplating whether newly to use the Northern Sea Route should conduct a thorough risk assessment and should contact the Club to confirm the position in relation to P&I cover.

A .pdf document with the FAQs is at: http://bit.ly/1CY3PcC

U.K. P&I ClubArctic seaRussia