Nike has made a formal pledge, which has been publicized in the Russia media, to never transport its goods through the Northern Sea Route (NSR) in a bid to help protect the Arctic from environmental challenges. The NSR is a new alternative route for shipments between Asia and Europe, passing mainly through the Russian territorial waters in the Arctic.
Cargo delivered through this route underwent an eightfold increase during the last six years, reaching 20 million tons in 2018, and this figure is projected to grow to 120 million tons by 2030. Nike cited studies estimating that the NSR could be used for about 8 percent of total container trade between Asia and Europe by 2030, rising to around 10 percent by 2050.
Hilary Krane, executive vice president, chief administrative officer and general counsel of Nike, said that it is partnering with Ocean Conservancy in encouraging all companies and industries to make the so-called Arctic Shipping Corporate Pledge, rejecting the NSR as a commercial option. “If there is no planet, there is no sport,” said Krane after visiting Arctic Alaska.
Several other companies have signed the pledge including Columbia Sportswear, H&M, Gap, Li & Fung, Kering and PVH Corp., plus ocean carriers such as CMA CGM, Evergreen, Hapag-Lloyd and the Mediterranean Shipping Company.
To some extent, the emerging use of the Arctic route as an alternative is associated with the melting of the Arctic cap due to global warming, which makes it easier for the ships to pass through the northern waters. The Russian government recently announced plans to heavily invest in the NSR infrastructure to eventually make the route a viable alternative to the Suez Canal.
As previously reported, Decathlon and other firms have chosen to ship products from East Asia to Europe by rail rather than by boat for environmental reasons as well as for greater speed and lower costs (SGI Europe - Vol. 29 N° 29+30 of Nov. 9, 2018).
