The World’s Major Maritime Trade Routes: Connecting the Globe (Strait of Malacca)

The World’s Major Maritime Trade Routes: Connecting the Globe

5. Intra-Asia Route

Covering the Asia-Pacific region, the Intra-Asia Route connects major ports in China, Japan, South Korea, and Southeast Asia with each other. Goods shipped include textiles, electronics, raw materials, and agricultural products. The intra-Asia route is vital for keeping the economies of the Asia-Pacific region interconnected. It facilitates trade between some of the world’s most dynamic economies.

Fun Fact:

The Strait of Malacca on this route is one of the narrowest yet busiest waterways in the world, with about 50,000 ships passing through it every year.

Historical Fact:

The Strait of Malacca has been a critical trading route since the 17th century, dating back to the spice trade between Southeast Asia, China, and India.

Related:

2023 Indo-Pacific Forum: ‘Malacca Dilemma’ a major security challenge for PRC

Reliable alliance and partner networks around the Malacca Strait, one of the world’s busiest shipping passages, would present economic and security challenges for the People’s Republic of China (PRC) in the event of a naval blockade.

The Malacca Strait is one of the Chinese Communist Party’s (CCP) primary security concerns. Hu Jintao, a former CCP general secretary, introduced the “Malacca Dilemma” concept in 2003 to emphasize how reliance on the waterway opens the PRC to serious vulnerabilities. Xi Jinping, the current general secretary, identified security challenges in 2014 and called protecting economic assets the “foundation.” “Xi takes the paranoia that has been endemic to Chinese politics since Mao Zedong’s rule to an extreme,” Foreign Policy magazine reported in October 2022. “Xi’s fixation on security betrays his persistent feelings of vulnerability.”

2017 EIA: The Strait of Malacca, a key oil trade chokepoint, links the Indian and Pacific Oceans

Oil shipments through the Strait of Malacca supply China and Indonesia, two of the world’s fastest growing economies. The Strait of Malacca is the primary chokepoint in Asia, and in recent years, between 85% and 90% of annual total petroleum flows through this chokepoint were crude oil. The Strait of Malacca is also an important transit route for liquefied natural gas (LNG) from Persian Gulf and African suppliers, particularly Qatar, to East Asian countries with growing LNG demand. The biggest importers of LNG in the region are Japan and South Korea.

If the Strait of Malacca were blocked, nearly half of the world’s shipping fleet would be required to reroute around the Indonesian archipelago, such as through the Lombok Strait between the Indonesian islands of Bali and Lombok or through the Sunda Strait between the Indonesian islands of Java and Sumatra. Rerouting would tie up global shipping capacity, add to shipping costs, and potentially affect energy prices.

Several proposals have been made to increase bypass options and reduce tanker traffic through the Strait of Malacca. In particular, China and Myanmar (Burma) commissioned the Myanmar-China natural gas pipeline in 2013 that stretches from Myanmar’s ports in the Bay of Bengal to the Yunnan province of China. The oil portion of the pipeline was completed in August 2014, and it is now operational at full capacity.

Sino-Myanmar pipelines:

Sino-Myanmar pipelines refers to the oil and natural gas pipelines linking Myanmar’s deep-water port of Kyaukphyu (Sittwe) in the Bay of Bengal with Kunming in Yunnan province of China.

What’s Really Going On In the South China Sea Between the Philippines and China

The United Nations Conference on Trade and Development (UNCTAD) estimates that about 80% of global trade is carried out by sea, both in terms of volume and value.  Of that amount, 60% of marine trade travels through Asia, with approximately one-third of all shipping occurring in the South China Sea. Because the Strait of Malacca connects the South China Sea and, consequently, the Pacific and Indian oceans, China, Taiwan (the United States does not officially support Taiwan’s independence), Japan, and South Korea depend heavily on its waters. China’s economic security is intimately linked to the South China Sea, as the country has the second-largest economy globally and more than 60% of its trade is conducted by water. If the U.S. were to attempt to enforce a blockade in the South China Sea, they would risk retaliation from China. 

[11-26-2024] Sources for the Indian Ocean: Bay of Bengal & Strait of Malacca

YouTube: Trade and Choke Points in the Indian Ocean

Honest update on the Philippines and Indonesia:

I’ve noticed that there were protests in Indonesia over the VAT increase. I haven’t seen much that would indicate a U.S.-backed color revolution. I’ve only seen one notable social media influencer and one organization that’s been funded by USAID and the Omidyar Network, quoted as objecting to the increase. There were some agitators throwing burning tires, and the protesters refused to stop the protests when they were supposed to. Afterward, some pushing happened between the protesters and security, who were supposedly unarmed. If they anyone wants more sources, they’re in this document.

The Scramble for Indonesia w/ video clips and notes

The marriage of RAND and SeaLight