Yes, that was my mistake. I typed that once I just got to Svart, so I saw the blue marker and assumed it was there. After I posted that that I went and played the game and realized I was wrong.
So yeah, apologies for the confusion, instead of going to Svart, keep going right and you'll see the Empire, now continue going right till you see another village. That village is Muspeleim, once there just go to the palace and talk to the Queen.
Now about that blue marker on Svart, you'll only go there later in the game so I assume the devs forgot to make it only appear once you have to actually go there, instead it will always be displaying a marker there.