Potential Financial and Environmental Outcomes of the Northern Sea Route

This bachelor's thesis focuses on providing an overview of the current state of logistics in the Northern Sea Route and analyzing its commercial viability in the future. In addition, it explores the potential environmental and sustainability risks that the Arctic region might face due to increased shipping activity in the area. The study was begun with a theoretical framework that draws upon peer-reviewed, high-quality academic literature to establish relevant theories, concepts, reports, and models. To guide the research, four investigative questions were formulated. Each investigative question focused on a specific goal: review the current state of the Northern Sea Route, explore its potential financial benefits, reveal its environmental risks, and reflect on the findings in the scope of the Nordic countries. This demarcation allowed the author to concentrate on the critical topics and discussion points, including evaluating supply chain risks, exploring the international aspect of the Northern Sea Route, and predicting future cargo vessel deployment on it. Qualitative research for this thesis involved conducting three interviews with logistics managers and experts, focusing on the feasibility of the North Sea Route supply chain. Combined with theory-based investigation, this approach allowed for a more in-depth exploration and elaboration of the research question and overall topic. The findings indicate that, while highly lucrative due to its time and distance-saving benefits, the Northern Sea Route cannot compete with conventional sea trading corridors. However, the research suggests that there is still considerable potential for developing safe and predictable shipping through further research and investment. Creating a mixed model of Asia-Europe logistics for high-value and urgent cargo is a promising area to explore. In conclusion, this thesis highlights the need for further research and development to ensure the safe and sustainable expansion of shipping activity in the Arctic region. It provides a framework for understanding the complexities and challenges associated with the Northern Sea Route and lays the groundwork for future investigations