Environmental and Economic Analysis on Sailing from Taiwan through Arctic Passages
2. Research Method
2.1. Ship Characteristics and Route Distance
2.2. Shipping Cost
2.2.1. Cost of Voyage Operation (CVO)
- Daily maintenance: Annual maintenance fees typically account for 1.095% of shipbuilding costs . Due to differences in design and specifications, the maintenance costs of ice-class ships can be 5% to 21% higher than those of normal container ships of the same size ; this study used the median of this range 13%.
- Ship insurance: Insurances fees for a typical container ship account for approximately 0.343% of shipbuilding costs . However, because the Arctic sea routes are not fully developed and entail adverse weather and navigation conditions, insurance companies typically list Arctic sea routes as high-risk routes. Consequently, the annual insurance fees for an Arctic sea route are 16.7% to 100% higher than those of a conventional route . According to statistics, most insurance companies are reluctant to insure firms that do not have experience in Arctic shipping, and even for cooperated companies, the insurance fees are still 25% to 50% higher than the conventional route ; this study used the median of this range 37.5%.
- Crew size and wages: Taiwan’s medium-sized and large container ships are equipped with automated control systems and are crewed by approximately 20 people. According to the website Nautic Jobs, the average monthly wage for a crew member of an international container ship in 2021 was US$3359.6 . However, ship operating companies have indicated that wages for crew members on Arctic sea routes are typically 10% to 20% higher than those for crew members on conventional sea routes because of the expertise required for ice-class ships and the dangers of Arctic sea routes ; this study used the median of this range, 15%.
- Company management fees: Company management fees were calculated by referencing Drewry’s  and 2020 reviews and forecasts of ship operating costs. Data from ship companies operating on Arctic sea routes have indicated that ice-class ships cost approximately 10% more to operate than does a typical ship .
2.2.2. Cost of Voyage Capital (CVC)
2.2.3. Cost of Voyage Fuel (CVF)
2.2.4. Cost of Voyage Transit (CVT)
2.3. Carbon Dioxide Emission
3. Results and Discussion
3.1. Distance of the Route
3.2. Calculation of the Shipping Cost
3.2.1. Calculation of CVO
3.2.2. Calculation of CVC
3.2.3. Calculation of CVF
3.2.4. Calculation of CVT
3.3. Calculation of the CO2 Emission
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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|Passage/Canal||Standard of the Toll|
|Panama Canal||Less than 1000 TEU = USD 60/TEU.|
Greater than or equal to 1000 TEU and less than 2000 TEU = USD 60/TEU.
Greater than or equal to 2000 and less than 3500 TEU = USD 60/TEU.
Greater than or equal to 3500 TEU = USD 60/TEU.
|Northwest Passage||Assumed that similar to Panama Canal|
|Suez Canal||First 5000 tons = USD 7.88/tons.|
Next 5000 tons = USD 5.41/tons.
Next 10,000 tons = USD 4.20/tons.
Next 20,000 tons = USD 2.94/tons.
Next 30,000 tons = USD 2.73/tons.
|Northeast Passage||Ice Class: Arc4 or 1A.|
Quantity zones: 7.
|Daily Operating Costs (USD)||1500 TEU||1500 TEU (1A)||4500 TEU||4500 TEU (1A)|
|Cost (USD)||1500 TEU||1500 TEU(1A)||4500 TEU||4500 TEU (1A)|
|Shipbuilding Cost||23.0 M||26.1 M||67.0 M||76.0 M|
|Fuel Consumption (Tons)||Panama Canal and Northwest Passage||Differences||Suez Canal and Northeast Passage||Differences|
|Passage Fees (USD)||22,000-Ton/1500 TEU Container Ships||50,000-Ton/4500 TEU Container Ships|
|Northwest Passage||90,000 *||277,000 *|
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Chen, P.-H.; Liu, T.-K. Environmental and Economic Analysis on Sailing from Taiwan through Arctic Passages. Water 2022, 14, 2099. https://doi.org/10.3390/w14132099
Chen P-H, Liu T-K. Environmental and Economic Analysis on Sailing from Taiwan through Arctic Passages. Water. 2022; 14(13):2099. https://doi.org/10.3390/w14132099Chicago/Turabian Style
Chen, Po-Hung, and Ta-Kang Liu. 2022. "Environmental and Economic Analysis on Sailing from Taiwan through Arctic Passages" Water 14, no. 13: 2099. https://doi.org/10.3390/w14132099