Effect of the Northern Sea Route Opening to the Shipping Activities at Malacca Straits

AbstractThe opening of the Northern Sea Route as an alternative route for transporting cargoes between the Far East and Europe seems highly acceptable by shipping companies due to the great saving in fuel consumption, bunker cost, operating cost, emissions and journey time. This situation will not only affect the maritime business activity in the Straits of Malacca but also, the Malaysian economy in different perspectives when the vessels sail via the Suez Canal and the Indian Ocean are expected to decrease. The objective of this study is to analyse the implication in the opening of the Northern Sea Route on Maritime Sector of the Malaysian economy by using PESTEL analysis. The main scope is focusing more on the Malacca Straits shipping activity by using a number of parameters that have been obtained from Port Klang and Port Klang Authority through a set of questionnaires and interview sessions with industrial experts