Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
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Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)

With Middle East turmoil slashing Suez Canal traffic, shipping firms are tempted to try the Arctic for quicker trips between Europe and Asia -- but commercial prospects are unlikely to match countries' strategic ambitions for the North Pole.

Container ships from China and South Korea aim to transit the Northern Sea Route in Russian territorial waters in the coming weeks, testing its viability as climate change keeps the passage free of ice longer each year.

Industry experts remain skeptical, saying that even if more vessels start going through, the bulk of global shipping will remain along established lines for the foreseeable future.

- Shorter, cheaper, harder -

Houthi militants in Yemen have disrupted traffic through the Bab el-Mandeb Strait by attacking vessels heading to and from the Suez Canal.

Many operators now avoid the passage and send ships instead around South Africa's Cape of Good Hope, vastly prolonging the journey between Asia and Europe and driving up fuel costs and emissions.

By contrast, the Northern Sea Route (NSR) could cut the distance by 30 to 40 percent compared to using the Suez Canal, and by nearly half from going around the southern tip of Africa, the credit insurance group Coface said in April.

But what looks good on spreadsheets ignores daunting constraints.

"The Arctic link can only be seasonal, from August to October," said Paul Tourret, director of the Higher Institute of Maritime Economics (ISEMAR) in Saint-Nazaire, France.

"And you need ice-class ships, which cost more," he told AFP.

That rules out Supramax and other hulking container ships that make up a major share of global traffic, since they can offer hugely competitive rates.

By contrast, the capacity of the Chinese container ship "Dubai Tower" that embarked on the NSR from Ningbo to Europe this month, is one-tenth the size, said Jerome de Ricqles, a sea freight specialist at Upply, a French-based transport management firm.

- Real but limited potential -

Most container ships using the NSR need to be escorted by Russia's fleet of nuclear-powered icebreakers.

Last year, a record 23 vessels made the passage, up from 15 in 2024, according to a recent study by insurance group Allianz Commercial.

That's fewer than the number using the Suez Canal each day.

Even with conflicts in the Middle East, some 35 ships a day transited the Egyptian canal in the first half of this year, down from more than 50 a day before the Houthis started their attacks in 2023.

The northern route is "a temporary and minuscule solution with regards to the overall needs", De Ricqles said.

According to Coface, just 3.5 percent of the current traffic between East Asia, northern Europe and North America could actually shift to Arctic routes.

Looking out to 2030, viability "remains extremely limited and mainly only concerns raw materials", Eve Barre, an economist who piloted the Coface study, said in a statement.

Even so, the NSR could attract bulk liquid vessels carrying oil and liquefied natural gas, who could see their costs slashed by 45 to 50 percent in some cases, the study found.

Dry bulk ships might also start using it, especially if they can operate with icebreaker escorts.

But the prospect also carries environmental risks if increased traffic accelerates Arctic melting, with soot emissions that settle on the ice cap trapping heat from sunlight.

Fuel spills are also a concern, and several big Western shipping firms including France's CMA-CGM, Switzerland's MSC and Germany's Hapag-Lloyd have already pledged they will not use the Northern Sea Route.

All in all, the route "isn't likely to upend the major balances of global trade", Barre said, noting that the interest in Arctic shipping "is less commercial than political" at a time of tense rivalries between Russia, China and the United States.

Tourret at the French marine institute agreed, calling the trips by the Chinese and South Korean vessels a sideshow.

"One swallow does not a summer make, and one Chinese container ship doesn't create a Polar Silk Road," he said, referring to Beijing's Belt and Road Initiative aiming to knit together a trading network between Asia, Europe and Africa.



Saudi Arabia, US Sign MoU on Strengthening Trade, Investment Cooperation

The agreement was signed during a session on Saudi-US innovation and economic cooperation on the sidelines of the B20 Summit in Washington, DC. (SPA)
The agreement was signed during a session on Saudi-US innovation and economic cooperation on the sidelines of the B20 Summit in Washington, DC. (SPA)
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Saudi Arabia, US Sign MoU on Strengthening Trade, Investment Cooperation

The agreement was signed during a session on Saudi-US innovation and economic cooperation on the sidelines of the B20 Summit in Washington, DC. (SPA)
The agreement was signed during a session on Saudi-US innovation and economic cooperation on the sidelines of the B20 Summit in Washington, DC. (SPA)

The Federation of Saudi Chambers of Commerce and the US Chamber of Commerce signed on Tuesday a memorandum of understanding aimed at strengthening trade and investment cooperation and expanding opportunities for collaboration between the business sectors between their countries.

The signing took place on the sidelines of the B20 Summit in Washington, DC.

The agreement was signed during a session on Saudi-US innovation and economic cooperation, organized by the US Chamber of Commerce, with the participation of Deputy Chief of Mission at the Saudi Embassy in the United States Nawaf Alissa, Secretary-General of the Federation of Saudi Chambers of Commerce Sultan Al-Musallam, and several US Chamber of Commerce officials and representatives of companies and the business sector.

Alissa highlighted the depth of economic relations between Saudi Arabia and the US.

The partnership has continued to evolve, expanding from traditional sectors into new fields, including artificial intelligence, digital technologies, advanced manufacturing, and infrastructure, amid the economic transformation underway in the Kingdom under Saudi Vision 2030, he remarked.

He noted that the total value of investment activities by the Public Investment Fund in the United States has reached approximately $170 billion since 2017, stressing the importance of sustaining the investment partnership between the two countries and strengthening cooperation in future economic sectors.

The event coincides with the B20 Summit, being held in Washington from November 9 to 11, with the participation of business leaders and international economic institutions to discuss priorities related to economic growth, trade, investment, and innovation.


China’s Trade Surplus Soars Past $1 Trillion as AI Boom Powers Exports

 In this aerial photo, new Tesla electric vehicles wait for shipment to overseas markets in a port in Shanghai on Tuesday, Nov. 10, 2026. (Chinatopix via AP)
In this aerial photo, new Tesla electric vehicles wait for shipment to overseas markets in a port in Shanghai on Tuesday, Nov. 10, 2026. (Chinatopix via AP)
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China’s Trade Surplus Soars Past $1 Trillion as AI Boom Powers Exports

 In this aerial photo, new Tesla electric vehicles wait for shipment to overseas markets in a port in Shanghai on Tuesday, Nov. 10, 2026. (Chinatopix via AP)
In this aerial photo, new Tesla electric vehicles wait for shipment to overseas markets in a port in Shanghai on Tuesday, Nov. 10, 2026. (Chinatopix via AP)

China's trade surplus surged past $1 trillion in the first 10 months as a global race to build AI infrastructure buoyed sales of high-tech products and helped offset weak domestic demand, a dynamic likely to sharpen tensions with major trading partners.

The data comes ahead of next week's Asia-Pacific Economic Cooperation summit in Shenzhen, where Chinese President Xi Jinping and US President Donald Trump are expected to meet for the third time this year, putting broader economic ties and tariff policy squarely in focus.

The figures highlight Beijing's growing reliance on overseas demand to support an economy hobbled by subdued consumption and a protracted property slump. But while the global AI investment boom is expected to keep demand for Chinese technology products strong into 2027, analysts warn that deeper dependence on external markets could leave China more vulnerable to protectionist measures abroad while masking persistent weakness at home.

Exports rose sharply by 35.2% in October from the ‌same month last year ‌in US dollar terms, customs data showed on Tuesday, only a touch slower than the ‌36.3% ⁠surge in September ⁠and comfortably ahead of economists' forecast for an increase of 33.5%.

That helped lift China's trade surplus to $1.04 trillion in the first 10 months, topping $1 trillion for a second consecutive year and reaching the milestone a month earlier than in 2025.

The swelling surplus could fuel further tensions with the European Union, where leaders have called for more trade curbs with China after reaching an agreement with Beijing to limit Chinese exports of hybrid vehicles to the bloc over the next few years. Because the measures have yet to take effect, factories are expected to bring forward shipments, bolstering exports in the near term.

"The risk of additional tariffs and other trade barriers will remain elevated ⁠in 2027, particularly as Chinese manufacturers continue expanding their presence in overseas markets," said Joe ‌Peissel, lead macroeconomist at Trivium China.

China's trade surplus with the US narrowed slightly ‌to $32.71 billion in October from $34.01 billion the previous month, though the broader imbalance remains a source of friction between the world's two largest ‌economies.

Beijing and Washington on Monday formally extended by two months a trade truce that had been due to expire ‌on Tuesday. China said last week that any expansion of purchases of US farm goods would hinge on the implementation of agreed reciprocal tariff reductions.

Imports rose 41.6% in October from a year earlier, beating the 32% increase forecast in the Reuters poll and accelerating from the 31% growth in September. Customs data also showed rare-earth exports edged higher from the previous month, while crude oil imports climbed to their highest level ‌since March as buyers adjusted to supply disruptions in the Middle East.

"The contraction in rare-earth export volumes eased last month, suggesting that China may have begun to relax enforcement of ⁠some export controls," said ⁠Nguyen Hoang Nam, China economist at Capital Economics. "This may reflect continued pressure from the US on Beijing to improve rare-earth supplies."

The data elicited little market response, with China's blue-chip CSI300 Index and the Shanghai Composite Index both edging up 0.1% by the lunch break.

HEADWINDS

One big worry for Beijing is that consumers remain reluctant to spend, constrained by a property market downturn that has battered household wealth and dented confidence in the economic outlook.

Sluggish demand at home has pushed Chinese automakers to seek sales in overseas markets. China's car exports maintained a solid pace of growth in October, while domestic vehicle sales recorded a 12th straight month of declines, separate data released by an industry association showed.

Greater reliance on exports, however, leaves China's economy increasingly exposed to any slowdown in global demand, with some analysts cautioning that shipment growth could cool once the AI investment cycle matures.

For now, most industry observers expect AI-related demand to remain robust. China's exports of semiconductors surged 111.1% year-on-year in the first 10 months in US dollar value terms, while overall shipments of high-tech products jumped 47.9%.

"We may see trade growth moderate next year, given the base effect," said Lynn Song, chief economist for Greater China at ING.

"But AI-related trade is expected to remain strong in the months ahead despite recent equity market volatility."


Tech Leads Stock Rally as Traders Track Wall St Rebound

Chip titans SK hynix and Samsung rallied as Seoul led gains across Asian stock markets. GREG BAKER / AFP
Chip titans SK hynix and Samsung rallied as Seoul led gains across Asian stock markets. GREG BAKER / AFP
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Tech Leads Stock Rally as Traders Track Wall St Rebound

Chip titans SK hynix and Samsung rallied as Seoul led gains across Asian stock markets. GREG BAKER / AFP
Chip titans SK hynix and Samsung rallied as Seoul led gains across Asian stock markets. GREG BAKER / AFP

Stocks rallied Tuesday to extend a Wall Street surge led by technology firms as investors took advantage of lower prices following last week's rout, while another plunge in oil prices added to the upbeat mood.

AI-linked firms led gains across the region, in stark contrast to the battering in reaction to last Tuesday's Democratic sweep of Congress that stoked regulatory concerns.

However, traders remain on edge about profitability in light of the vast sums pumped into the sector, while they were also keeping tabs on Nvidia after boss Jensen Huang's admission of an affair amid speculation of a Chinese espionage plot.

Titans including Amazon, Microsoft and Apple were among the big gainers Monday in New York as tech bounced back with help from bargain-hunting, with observers pointing out that confidence in the AI outlook remained solid.

The Nasdaq's 2.7 percent spike led a strong day on Wall Street, and Asian investors took up the baton.

Seoul surged 4.5 percent thanks to strong advances in chipmakers SK hynix and Samsung, while Tokyo jumped almost three percent on the back of rallies in Kioxia, SoftBank and Tokyo Electron.

Taiwan's TSMC and MediaTek climbed more than two percent to drag the Taiex 2.5 percent higher.

Hong Kong, Shanghai, Sydney, Singapore, Bangkok, Jakarta and Wellington were also higher.

London, Paris and Frankfurt opened with big gains to extend Monday's jump.

However, SPI Asset Management's Stephen Innes said the gains did not suggest markets were back in rude health.

"The market rallied because the sellers stepped away, not because the entire buy-side suddenly rediscovered its courage," he wrote in a commentary.

"For the second consecutive session, the companies receiving the enormous capital expenditure cheques dramatically outperformed the businesses writing them. That is a potentially important development after last week's indiscriminate liquidation," he said.

- 'Positive momentum' -

"The hyperscalers remain central to the AI investment cycle, but the market is increasingly questioning the returns on the extraordinary sums being committed to new infrastructure.

"Equipment providers, optical networking companies and selected data-center suppliers can still benefit from existing spending programs, even as investors become more selective about the ultimate economics for the companies funding those projects."

Oil prices continued their retreat on hopes the United States and Iran will eventually bring an end to the Middle East crisis.

Both main contracts fell around one percent Tuesday, extending the previous day's drop that saw Brent give up almost six percent.

They have lost around 20 percent this month as traders bet on a resolution to the seven-month-old conflict, which has sent inflation soaring and forced central banks to hike interest rates.

US President Donald Trump said Monday there was "positive momentum" towards ending the war after meeting Qatar's prime minister at the White House.

"I had an excellent conversation with Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani," Trump said on Truth Social, adding that "much was discussed with respect to the Islamic Republic of Iran".

While expectations had grown ahead of last week's midterms that he would resume strikes on Iran this month, Trump has talked down such a move while leaving the door open to them.

In his post on Monday, Trump reiterated that the United States was "locked and loaded", but that he believed further strikes were "quite unlikely" given that key US allies in the Gulf "would prefer the status quo".

His comments echoed early statements to CNN over the weekend when he said it was "highly unlikely" fighting would resume.