Research on the Economic Simulation of the Arctic Passage

The focus of Arctic issues is the Arctic route rights and interests competition, which results in the economy of the Arctic passage. In this paper, after the detailed analysis of the operating parameters impact on this economy, it described the strategy of the Arctic passage navigation economic simulation and obtained simulation flow diagram. Then, it gave an application of this simulation model with collected data and reached a preliminary simulation result. Finally, with the Arctic passage navigation cost model and preliminary simulation result, this paper used the @Risk software to have an economy simulation for the Arctic route and made a discussion of the result. This study can help the shippers, insurers and governments to assess the risk of opening up a shorter route between the Pacific and the Atlantic Oceans.