Chinese Carrier With Red Sea History Now Plans a Russian Arctic Route
A Chinese niche carrier that popped up in the Mideast market last year has reportedly added a container service from China to Europe via the Northern Sea Route - the Russian-controlled waterway north of Siberia.
Sea Legend Shipping is a Chinese-controlled, Singapore-based line that emerged during the most intense phase of the Houthi blockade of the Red Sea. With escort support from China's PLA Navy, Sea Legend provided a rare container-shipping option for cargo from the Far East to regional ports in and around the Red Sea. The company advertised its hardening measures, including security guards, razor wire and steel shutters, and it emphasized that it operated Chinese-flagged ships. (The Houthis have pledged not to attack vessels linked to Russia or China.) An executive with the firm told Chinese media that as of January 2024, it was the only liner company operating weekly services to Red Sea regional ports.
The Houthi blockade remains a serious problem, but Sea Legend is now ready to strike out on another bold venture: a service through the icy Northern Sea Route (NSR). Beginning this September, Sea Legend will start a new Arctic route that directly connects China with Northern Europe, delivering cargo from east to west in just 18 days. The current standard via the Cape of Good Hope route is about 30-50 days, according to Freightos, meaning that Sea Legend's route could realistically cut delivery times in half. For shippers, this is Sea Legend's main business proposition: faster shipping times mean a faster and more responsive supply chain, making it easier to hit delivery deadlines, cut inventory costs and change product lineups. High-value, high-tech cargoes are high on the list of target markets, the company said.
The time window for an NSR route is narrow; though Arctic warming has increased the amount of ice-free transit time each season, the route's suitability for general commercial use is seasonally limited, at least for now. The company plans only one voyage this year, according to Chinese outlet eWorldShip, and it has apparently booked up quickly.
The Northern Sea Route's commercial development is a top priority for Russian President Vladimir Putin, who has assigned responsibility for its expansion to state nuclear agency Rosatomflot (operator of Russia's nuclear-powered icebreakers). Sino-Russian cooperation is a major driver of economic development on the route, both for shipping and for resource extraction. Chinese firms are key backers for the region's biggest projects, like Arctic LNG 2, the sanctioned liquefaction terminal on the Gulf of Ob.