Strait of Malacca: Strategic Chokepoint

The Strait of Malacca is between the Malaysia and Indonesia. It connects the Indian Ocean to the Pacific via the South China Sea. It is almost 900 km long. Its narrowest point is near Singapore and is less than 3 km wide.

It is one of the world’s most strategic chokepoint. It plays a crucial role in global trade and regional security. This is why the Strait of Malacca is a source of competition between major powers.

Strategic hub

The Strait of Malacca is a vital artery for global trade. About $3.5 trillion of global trade flows passes through it. Over 100 000 ships transits there annually. Key cargo includes crude oil, LNG, coal, palm oil, manufactured goods, electronics, and machinery.

The strait supports the wealth of countries like China, Japan, South Korea, Singapore, and India.

The strait is also crucial for oil trade. About 30% of global oil trade by sea passes through daily. It is the second busiest oil chokepoint in the world after the Strait of Hormuz.

Challenges

Security Concerns

Environmental concerns. Congestions in the strait can create navigational hazards. There have been cases of ships colliding and spilling oil. This is a source of concern for the environment. The strait houses thousands of marine species.

Piracy. The strait was once seen as a piracy hotspot. It was said to be one of the world’s most risky waterways for shipping. Over the past two decades the number of incidents dropped sharply. This is the consequence of regional efforts to secure the strait. These include:

• Coordinated naval patrols,

• Better surveillance,

• Improved security measures in ports and ships.

But there are still some incidents of armed robberies and boardings at night. They are generally not violent but involve stealing cash, equipment, or engine parts.

Terrorism.  No large-scale attack in the strait succeeded to date. But threat remains. Some groups have activities in the region. These include groups working with al-Qaeda, ISIS, and local islamist groups. In the early 21^st century, many of these groups planned attacks on ships passing through the strait. None of them succeeded but vigilance is still required. A successful attack could disrupt global energy and trade flows. The groups would then gain global media attention.

The strait is still a sensitive zone that requires constant surveillance to prevent hybrid attacks.

But there is another security concern. Given its importance, the strait is source of competition between great powers. Whoever controls or influences it gains huge leverage over regional and global trade flows. There is then a risk of blockades or disruptions.

Geopolitical competition

The Strait of Malacca is not just an economic chokepoint. It is also a hotspot for geopolitical competition.

It has a huge strategic value for China. The strait channels about 80% of its oil imports. This represents 60% of its entire oil supply. Also, about two-thirds of China’s maritime trade volume passes through it. To reduce its reliance on the strait, Beijing developed alternative options. These include the China-Myanmar pipelines for oil and gas, and the investments in ports within the Belt and Road Initiative.  It also increases its navy’s presence in the region.

The U.S. navy often patrols the waters to ensure freedom of navigation. There are also strong alliances with regional countries such as Singapore or Philippines. The aim is to counter China’s growing influence and claims in the area. The U.S. also have a presence with the Diego Garcia base.

India also plays a big role in the area. Its navy increased deployments near the western entrance of the strait. It also deepens ties with Southeast Asia states like Vietnam and Indonesia. India also aims to balance China’s expansion.

Alternatives

Due to the instability and concerns around the Strait of Malacca, alternative routes are often considered.

The Lombok Strait in Indonesia. This strait is much deeper and suits larger ships. Plus, there is lower traffic. But this route adds about an extra thousand kilometers and up to 4 days of sailing for ships from the Middle East to East Asia. This leads to higher fuel costs and supplies. It is also in Indonesia’s waters and the country can decide to close it or forbid it.

The Sunda Strait in Indonesia. This strait is between Java and Sumatra islands. It can be shorter than the Lombok Strait. But it is narrower and shallower. It does not suit large vessels. Plus, there is volcanic activity and strong currents there making it dangerous.

The Makassar Strait. The route passes through the Makassar Strait and then through the Flores Sea and out via the Lombok Strait. This is a common alternative for ships avoiding the Malacca Strait and it suits large vessels. But it is longer and require complex navigation through Indonesia’s archipelago. It is also conditioned to Indonesia’s will.

Northern Sea route. This route passes through Russian Arctic waters. It is much sorter for trades between Europe and Asia. But it is limited by ice most of the year and only available in summer. It comes with high risks given the hostile environment and therefore high insurance costs. It also requires Russian ice-class ships and cooperation. Cooperation might be compromised over the war in Ukraine and sanctions.

Decoding geopolitics isn’t a job. It’s survival.

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