Eagle Bulk Shipping Inc (EGLE)

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Understanding China’s Arctic Policies

China is playing a prudent long game in the region, with economics the driving factor.

The potential commercial benefits of cargo transportation through the Arctic in comparison to the Suez Canal also seem appealing. In August and September 2009 two German heavy-lift vessels, MV Beluga Foresight and MV Beluga Fraternity carried a cargo of steel pipes from Arkhangelsk (Russia) to Nigeria using the Northern Sea Route. The new passage shortened the distance for 3000 nautical miles and reduced fuel consumption by 200 tons per vessel, resulting in savings of 600 000 U.S. dollars.

A year later, the Hong Kong vessel MV Nordic Barents transported iron ore from Kirkenes (Norway) to Shanghai using the same route and cut expenses on $180,000.

In 2012, 46 vessels carried more than 1.2 million tonnes of cargo through the Northern Sea Route, up 53 percent compared with 2011.

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