The emergence of Arctic shipping: issues, threats, costs, and risk-mitigating strategies of the Polar Code

Commercial shipping in the Arctic region presents significant financial incentives through reduced transit times and opportunities for natural resource activities. However, it also presents significant risks for the safe navigation of vessels and increased environmental pollution. This paper describes the factors that are promoting the expansion and inhibition of commercial shipping in the Arctic region. It explains the hazards of Arctic shipping and classifies threats to the environment under oil pollution, aquatic species invasion, marine mammal displacement, and carbon emissions. The costs described relate to underwriter and insurance premiums. The paper also describes the risk-mitigating elements of the International Code for Ships Operating in Polar Waters (Polar Code). The paper concludes to highlight the need for a deeper understanding of associated risks by stakeholders before sea routes in the Arctic region are fully commercialised for maritime use.