Polar effect

Sea Asia Group has reviewed the risks of a Northern Sea Route impacting Singapore in the future. It said only 71 vessels used the Northern Route last year with 18,000 vessels transiting the Suez Canal. However, it seems likely that, as experience grows in accomplishing Arctic transits, more transits will take place. It is clear some concerns exist as evidenced by the fact Singapore has obtained observer status at the inter-governmental Arctic Council. However, based on the 2013 statistics as well as the recent and sudden drop in oil and bunker prices, it appears unlikely there will be any significant decline in Singapore Straits transits and Singapore port visits in the next decade.