Abstract

With increased challenges forcing blockages at traditional maritime chokepoints, this case describes China’s exploration of the ‘Polar Silk Route’ (PSR), a northern extension of its Belt and Road Initiative. The case delves into the commercial viability of polar routes and the trade opportunities opened up by the PSR. It examines the likely commercial advantages of such an alternate maritime route. It also touches upon the various challenges associated with the sustained commercial success of this alternative. Enabled by Arctic ice melt and technological advancements in ice-class vessels, could the PSR – largely along the Northern Sea Route – prove to be a strategic logistics breakthrough, or would it be limited to a high-risk experiment for global supply chains?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the Impact of Geopolitical and Environmental Uncertainty on Global Supply Chains
• Evaluate the Strategic and Commercial Viability of PSR over traditional maritime routes
• Develop Strategic Responses for Firms and Nations Facing Supply Chain Disruptions
• Assess environmental and regulatory challenges in polar logistics.

Keywords

Transportation and Logistics; International Trade; Government and Economy; Resource-Based View (RBV); Lean vs Agile Supply Chains; Transaction Cost Economics (TCE),China, Belt and Road Initiative; Polar Silk Road; Arctic Shipping; Maritime Routes; Northwest Passage (NWP); Transpolar Sea Route (TSR);