On September 20, a cargo ship left Zhoushan Port in Ningbo, Zhejiang Province, bound for Europe. Instead of taking the usual route south to the Strait of Malacca, the ship turned northeast to traverse the Bering Sea and reach Europe via the Arctic. This new route, dubbed the China-Europe Arctic Express, is running between three major Chinese ports in Ningbo, Shanghai and Qingdao, and ports in Felixstowe in the United Kingdom, Rotterdam in the Netherlands and Hamburg in Germany, taking only 18 days. In contrast, a southbound trip takes 40 days via the Suez Canal and more than 50 days via the Cape of Good Hope in South Africa.

Timeliness is a key competitive advantage in international trade, and the time-saving China-Europe Arctic Express will therefore open up more opportunities for importers and exporters.

Over 80 percent of trade between China and Europe is transported via the Strait of Malacca, so finding ways to reduce transportation costs and enhance the resilience of trade will bring big benefits. Establishing a shipping route through the Arctic is an ambitious strategy for China.

The development of Arctic shipping routes has not been easy. The harsh polar environment, the threat of polar ice and the lack of infrastructure are all huge challenges. Many of these challenges have been overcome using Chinese science and technology. The icebreaker Xuelong has successfully carried out many Arctic scientific expeditions, accumulating extensive polar navigation experience. In 2013, China COSCO Shipping Corp. Ltd. made the first polar voyage with a Chinese merchant ship.

On January 16, 2018, the Chinese Government issued the white paper China's Arctic Policy, outlining the country's fundamental position on Arctic issues and proposing the building of a "Polar Silk Road," with the aim of promoting global connectivity by integrating Arctic shipping routes with the Belt and Road Initiative, a China-proposed initiative to boost connectivity along and beyond the ancient Silk Road routes. This was the first time that China upgraded its Arctic presence from a scientific presence to a commercial presence. China plans to develop two Arctic shipping routes, connecting East Asia with Europe and North America, respectively.

The market response shows that the China-Europe Arctic Express is already influencing the trade pattern between China and Europe. Based on information from COSCO Shipping, Ningbo Marine and other ocean shipping companies, China's exports to the UK and Nordic countries are expected to achieve new breakthroughs in 2025. COSCO Shipping has diverted some of its Europe-bound cargo ships to the Arctic route. Although this still accounts for a small proportion of COSCO's China-Europe transportation volume, it does signal a shift.

The China-Europe Arctic Express provides a more convenient trade and transportation route for China and Europe, significantly shortening the distance between the two major markets. It is also a safer route to ensure a stable supply chain. Trade transportation between China and Europe has long relied on traditional shipping routes, where there are numerous security risks. In the Strait of Malacca, the Suez Canal, the Red Sea and the Mediterranean Sea, geopolitical factors make shipping routes vulnerable to disturbances and blockades, restricting maritime transportation. In addition, congestion on these traditional routes is becoming increasingly serious, not only increasing the transportation time but also leading to possible instability in the supply chain. The regions through which the China-Europe Arctic Express passes are politically stable, reducing the risk of disturbances. For these reasons, it is poised to reshape China-Europe trade and has the potential to become an important route for international trade.

Although the China-Europe Arctic Express is being developed under China's leadership, it is open to international cooperation. On September 19, Lin Jian, spokesperson of the Ministry of Foreign Affairs, said that China stands ready to strengthen international cooperation on the building and operation of basic infrastructure in the Arctic shipping routes, and jointly advance the development and exploration of the routes and protect the environment there.

The China-Europe Arctic Express is poised to reshape China-Europe trade and has the potential to become an important route for international trade

Copyedited by G.P. Wilson

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