Trump's Greenland envoy appointment puts focus back on Arctic trade routes

ISTANBUL

US President Donald Trump's recent appointment of Louisiana Governor Jeff Landry as special envoy to the autonomous Danish territory of Greenland - part of his effort to control the island - has put the issue of Arctic trade routes back into the spotlight.

This move aims to strengthen the security and the economic cooperation in the region, according to the White House, but Danish representatives and the EU said this issue concerns the inviolability of borders, and that they are keeping a close eye on it.

Greenland is vital for the US ballistic missile warning system against potential military threats from Russia and other countries, but also for its rich natural resources, which will be exposed as glaciers melt.

Sea routes opened by melting glaciers due to global warming are becoming the new alternatives to traditional sea routes like the Suez and Panama canals. Countries like the US, Russia, and China are on the lookout for these new alternatives.

Maritime transport in the region significantly increased in recent years, bringing about new competition areas, according to the Arctic Council, an intergovernmental forum promoting cooperation in the Arctic.

Logistical challenges like temperature fluctuations, ice conditions, and the lack of infrastructure make these routes difficult — they require serious investments and global cooperation for long-term sustainability and security, despite the economic potential, experts say.

Rico Luman, senior sector economist on transportation and logistics at the ING Group, told Anadolu that Greenland could become a connecting point for the Northern Sea shipping routes.

Luman stated that the number of ships using the route in the East-West direction is on the rise, but still many obstacles remain, as the routes are not suitable for use throughout the year, and the drifting ice requires to be hulled and icebreakers are often needed. He mentioned that the Northern Sea Route (NSR) passes through Russian territory, carrying geopolitical risks.

He highlighted that climate change may improve route conditions in the future, but these routes may not play a key role in the near future due to the lack of intermediate ports to be called at or anchored at in emergencies, as well as environmental concerns.

Luman noted that the NSR reduces the distance between Asia and Europe by some 8,000 kilometers (almost 5,000 miles), which can result in savings in many items, like fuels, but restrictions and risks remain.

He stated that, while the Suez Canal route is being reopened, shipping insurance will be of great importance, and the return of the Suez Canal could bring with it an increased capacity in early 2026, as there are many new ships entering the container shipping business and this pressure necessitates an evaluation to further boost the current excess capacity.

Luman added that many actors like the US, Russia, and China has been showing some growing interest in the Arctic region as of late, but despite so much noise around the region, there has yet to be real action in the area - while the number of voyages is on the rise, especially led by Chinese shippers, the route still makes up a very small part.

He noted that Greenland’s strategic value needs to be distinguished as a source of raw materials, as the island is a vast body with large amounts of mineral reserves that could be discovered in the region.

He added that, while the route makes sense for bulk carriers, due to the small population and the lack of hinterlands, there may not be many opportunities for container shippers.