Santa Opens Arctic Ocean for Business

Reindeer have new competition. Between now and next March, ice thickens in the Arctic Ocean, but, because of climate change, gradual melting after March opens a shipping channel in August. Ships with stronger hulls and expensive icebreaker escorts even can use the route for up to three months.

     Up until about five years ago, the dark cold South Pole was home to penguins, and the far north only housed Eskimos and Russian prisoners in Siberia. Oleg Sentson, the Ukrainian film director on a hunger strike, is still there in a penal colony serving a 20-year sentence for protesting Russia's annexation of Crimea. But Russia's President Putin also now hikes on vacations in Siberia, and Russian ships travel from Vladivostok to St. Petersburg on a Northern Sea Route Putin calls "a matter of national pride."

     Why are countries scrambling for claims to sea routes through the Arctic Ocean and not around Antarctica? Examine the North and South Poles on a globe or map. How many degrees latitude does it take from both poles before you find at least five countries? What potential problems do you see when passing between Russia and Alaska?

     Arctic shipping routes, according to a paper prepared by the engineering faculty at Macquarie University in Sydney, Australia, are most dangerous in the East Siberian Sea. In the shallowest area of the Arctic Ocean, ice builds up earlier and faster after summer, and uncharted waters are more likely to cause ships to run aground. Even during summer, half of the East Siberian Sea can remain ice covered.

Go North, Young Men

     Despite the harsh environment and high insurance rates, activity is expected to increase in the far north due to a variety of factors. Arctic routes shorten navigation time, and they are free of pirates. Oil and gas reserves in the area already have attracted exploration. (See the earlier posts: "Troubled Northwest Passage Found" and "North Pole Flag.")

     Accidents, seldom now, can be expected to increase as shipping traffic increases, however. Ship captains who ply the Arctic Ocean cannot help but feel a little like captains of potential Titanics. Ice can trap ships, and they still can hit icebergs, as well as icebreaker escorts and other ships. Captains need constant weather station updates about the changing wave heights, wind speeds, and temperatures that affect icing in each section along their routes, information they also need in order to know how long crew members should stay out on deck. They want protocols about plans for emergency assistance and oil spill clean ups from members of the Arctic Council (Russia, Norway, Sweden, Denmark-Greenland, Finland, Iceland, Canada, and the United States).

Tourists Who Have Been Everywhere

     Possible perils failed to deter 900 passengers from paying anywhere from $20,000 to one million dollars per person to book passage on the Crystal Serenity's first cruise through the Arctic Ocean in 2016. The ship sailed from Seward to Nome, Alaska, where it docked to unload solar panels ordered by the city's population of 3800. In groups, cruise passengers took turns sailing to shore in transport boats to photograph wild musk oxen; eat $5 slices of blueberry pie; watch Eskimo dancers; and purchase locally made seal gloves and wallets. From Nome, a month long voyage passed by Greenland and ended in New York.

     The trip required a crew of 600, a special navigation satellite system, and chartering cargo planes to deliver perishable food for pickups at communities along northern Canada. The Crystal Serenity made another, and its final, passenger voyage in 2017.

Faster Cargo Shipments

     After the Crystal Serenity tested the Arctic route for passenger cruises, the Danish-based Maersk line, the world's largest shipping company, launched the Russian Venta Maersk's container ship north from Vladivostok, west across the Arctic Ocean, and south around Norway and Sweden to St. Petersburg on the Baltic Sea. Carrying 3600 containers of Russian frozen fish and electronics from South Korea, the ship cut off about two weeks from the usual time it takes to use the southern route from Asia and enter Europe using the Suez Canal. While time was saved, profit was lost, because container ships are used to dropping off and picking up a thousand containers at a dozen or more ports along the way. No such transshipment points exist on the Arctic route. Following the test trip, Maersk announced no immediate plans to substitute the Northern Sea Route for its usual schedule.

     Russian cargo ships already do service domestic ports on an irregular basis. Now Moscow is building roads, a railroad, and facilities to establish regular ports of call along its Northern Sea Route. China also has made overtures to Iceland and Greenland to establish outposts on what Beijing calls its "Polar Silk Road." (See the earlier posts, "Iceland Gives China the Cold Shoulder" and "China Stakes New Claim to Arctic.")

      After China's President Xi Jinping determined to reduce pollution by switching from coal to natural gas, a serious shortage left Chinese homes without heat and shut down factories. To prevent future natural gas shortages, China's state-owned COSCO shipping company and Japan's Mitsui O.S.K. Lines formed a 50-50 partnership to ship liquefied natural gas (LNG) east on the Arctic Ocean and south to Asia from Russia's Novartek producer on the Yamal Peninsula. While a tanker can make this trip in 15 days in summer, compared to 35 days by going west and south through the Suez Canal, ice is too thick in the winter. Yet, there is pressure to increase China's shipments through the most dangerous East Siberian Sea.



 
           

Out-of-this-world App Helps Kids Behave

Shortly after reading about three factors that contribute to a kid's bad behavior, mentioned in The Good News About Bad Behavior by Katherine Reynolds Lewis, I learned about the Space Nation Navigator smartphone app. The book and app go together. Lewis claims a child's bad behavior is related to:

• less play time,
• more social media exposure,
• fewer confidence-boosting real world connections, including household chores.

Finnish-based Space Nation (spacenation.org), a space tourism startup, collaborated with NASA to develop a real life astronaut training app for smartphones. Before downloading Space Nation Navigator, you can preview some of the activities at spacenationnavigator.com. To help develop astronaut skills, new missions and minigames are updated daily. Quizzes help kids discover the science that enables astronauts to travel in space, and physical challenges prepare students to endure space travel.

     Space Nation participants enter a global competition to earn badges and prizes, including the grand prize: a trip for four to the moonlike scenery in Iceland, where Apollo astronauts trained. Eventually, the Space Nation Astronaut Program aims to launch one candidate into space every year.

     For other space-related activities for kids, see the earlier post, "Space Explorers."

World Energy Attitude Shifts

According to a report by the International Energy Agency (IEA), in 2016 the global economy grew and carbon dioxide emissions from energy production did not. In fact, the IEA found worldwide carbon dioxide emissions have remained the same for three years.

Progress is uneven but promising. China reduced emissions 1% last year, and India just passed tougher auto emissions standards in March, 2017. Where lower priced alternatives to coal have encouraged countries to switch to natural gas, renewable power sources, and nuclear energy. carbon dioxide output has declined or stabilized. In every country, improved energy efficiency has helped the environment in terms of carbon dioxide reduction and less deforestation. In Malawi, for example, rural and urban consumers have been willing to consider replacing traditional three-stone fires with an investment in clay, metal, or thermoelectric stoves that burn charcoal more efficiently than charcoal and much more efficiently than wood.

The growing concern about climate change has stimulated the search for green energy alternatives. In Norway, the Ocean Sun company is working on solar farms that can float on the ocean and transmit power back to crowded urban areas. Others are looking into technology for floating wind turbines, for generating power from hydrogen, and for using the hydropower of waves, tides, and rivers.

 At its gold mines in Suriname and Burkina Faso, Toronto-based IAMGOLD is using solar energy to reduce the use of diesel oil that generates greenhouse gases. The company sees the hybrid diesel solar photovoltaic engine, built by the Finnish group Wartsila at its gold mine in Burkina Faso, not only as a way to make an environmental contribution to the world but also as a way to reduce energy costs, protect against fuel price volatility, and increase local employment.

Efforts to convert the power of Atlantic Ocean waves into energy in the Orkney Islands north of the Scottish mainland and at the Wave Hub facility in Cornwell off the far southwest coast of England have been less successful. Besides the prohibitive cost, tricky engineering problems and the need to develop new materials capable of withstanding storm stresses and corrosive salt water require solutions. A device needs to handle the variety of pounding storms and normal waves, up and down motions, and wave speeds. Navigation needs to avoid these devices. And biologists view the moving parts of underwater turbines as a threat to sea mammals, fish, and diving birds. Yet, the UK's European Marine Energy Centre in the Orkneys attracts tests by Wave-tricity's Ocean Wave Rover and Finland's Wello Oy Penguin. Australia's Carnegie company has been financing CETO's Wave Energy Technology which has placed giant buoys off the coast of Cornwell in an attempt to produce emission-free energy and desalinated freshwater.  

Corruption Has Consequences

Countries with a reputation for being free of corruption from abuse of power, bribes and kickbacks, and secret deals are attractive tourist destinations and prospects for business investment. Unfortunately, based on a study of 168 countries by the OECD (Organization for Economic Co-operation and Development), no country is totally free of corruption.

     In 2015, using a scale of 0-100, the OECD's corruption index showed 68% of the ranked countries scored below 50, indicating a serious corruption problem that took protesters to the streets in some countries. Even Denmark, which scored 91, has room for a bit of improvement. The United States and Austria, with scores of 76, did not make the top ten list of least corrupt countries, which included: Finland, Sweden, New Zealand, the Netherlands, Norway, Switzerland, Singapore, Canada, and Germany. Corruption caused Kim Jong-un's North Korea and Somalia to tie for last place in both 2014 and 2015.

     Brazil, now embroiled in a corruption scandal (See the earlier post, "Warning to Students: Don't Cheat."), dropped 5 points since 2014, and was in 76th place in 2015. Not a good prospect for countries sending teams to this summer's Olympics in Rio.

     The OEDC cautions that its corruption index is based on surveys of conditions institutions make within a country's borders. Countries might have a higher or lower score, if their corruption activities in foreign countries were measured. Indeed, half of OECD countries have been found to violate agreements to stop companies from paying bribes when they do business in countries outside their borders.

     The earlier post, "Cheating is Easy, but...," provides some anti-corruption strategies for doing business around the world.