So far, the main outcome of the US-Israel war with Iran has been the Strait of Hormuz. Because of this, ships pass through the strait decreased By 95%, oil and gas prices in Europe and Asia rose by 35-60%. More importantly, it showed how closing a single sea route could undermine entire global trade. Against this background, there is another bottleneck in global maritime trade that has drawn attention – the Strait of Malacca between Malaysia and Indonesia. Last week, Indonesian Finance Minister Raised a question Imposing fees for passage through the strait. Although it is fast to reject And from their words, they still caused great concern. Bloomberg Agency He explainedAnd why the Strait of Malacca is so important – and at the same time a serious vulnerability (especially for China). “Medusa” briefly retells this material.
Why is the Strait of Malacca important?
This is the shortest sea route from East Asia to the Middle East and Europe. It extends between Malaysia and Indonesia, and is bordered by Thailand to the north and Singapore to the south. Approximately 22% of global maritime trade takes place through the Strait of Malacca. It carries a wide range of commodities, from oil and liquefied natural gas to coal, palm oil and iron ore. US Energy Information Administration Calls The Strait of Malacca and Hormuz constitute the main bottlenecks for global oil transit (more oil has been transported through the Strait of Malacca in recent years than through the Strait of Hormuz).
Why is the strait weak?
Its length is 800 km, and its width at its narrowest point is 2.7 km (for comparison, the width of the Strait of Hormuz at its narrowest point is 34 km). This increases the risk of collisions between ships and their soldiers, especially in the busiest parts of the strait. Even localized disruptions can slow traffic and increase the cost of shipping through the Strait of Malacca, Bloomberg explains. There are alternative routes through the Indonesian archipelago, but they are not convenient or easy to navigate.
Who controls it?
The Strait of Malacca is located adjacent to the territorial waters of Malaysia, Indonesia, Thailand, and Singapore. They patrol it together, but it is classified as an international strait. This means that riparian states cannot stop transit through the strait or impose fees on it, although fees are allowed for certain services.
That is why, last week, when Indonesian Finance Minister Purbaya Yudhi Sadiwa pointed out… become Loud speculation about the possibility of tariffs being imposed on ships passing through the Strait of Malacca sparked international outrage (although the minister walked back his words almost immediately). Singapore and Malaysia maleThe question of duties is not being seriously considered.
What is the importance of the Strait for China?
China is the world’s largest oil importer, and most of this supply comes through the Strait of Malacca. This makes China very sensitive to potential instability in the strait: if passage through it is blocked due to war, accidents, piracy or other crises, China will face a serious problem with regard to energy supplies and trade in general. Chinese leaders have long been aware of this problem (they call it the “Malacca Dilemma”), and are trying to reduce their dependence on this sea route, including via oil and gas pipelines from Myanmar and Russia.