Maritime transport is the backbone of global trade, moving over 80 per cent of goods traded worldwide by volume. Several studies have predicted a significant increase in population and urbanization in Africa, Asia and South America by 2050, resulting in the massive development of future societies and megacities. These factors underscore an urgent need for improvements in port infrastructure.
Population growth, urbanization and industrialization are increasing future demand for food and water, while deteriorating conditions of environment, climate change and cataclysmic events like the Covid 19 pandemic are further exacerbating the challenges of ensuring uninterrupted global supply chains. As a result, the demand for waterborne food, sea transportation and port infrastructure has increased significantly. The increase in aquatic food production is a growing reality, while reducing the environmental impact of global maritime transportation is a major concern of the global community. In response to pressures from the global community, the maritime industry is compelled to adhere to stricter regulations and voluntary standards in the areas of health, safety, security and the environment. However, a noteworthy cog in the wheel of world trade is ensuring the free navigability of some prominent straits and canals connecting major and minor players of world trade.
The Ukraine-Russia war, the recent US-China tariff war, the Palestine-Israel conflict, a disturbed South Asia and an overambitious China eager to gain global hegemony, combined with the threats of terrorism and fundamentalism, are taking the world community away from the so called liberal international order, created after World War II by the US and its western allies. After a 70-year run, the global liberal order is under threat. The future of liberal democracy, open markets and common security pacts hang in the balance. There are red flags everywhere ~ from outbreaks of populism to the spread of protectionism and trade wars.
In this volatile backdrop, expert geo-strategists predict that the sea may be the theatre of a future World War and vital channels of connectivity like the Strait of Malacca, Suez Canal, Panama Cannel, Formosa Strait, Strait of Gibraltar, Strait of Hormuz, Korea Strait, Bosphorus Strait and few others may turn out to be ‘chokepoints’ disrupting global trade with catastrophic consequences for the world community. Nation states controlling these Straits and Canals, through unilateral, highhanded action may block these channels, with catastrophic consequences not only for global trade but also for geo-political stability worldwide.
A strait is a narrow body of water that connects two larger bo dies of water. It is like a narrow passage between two land masses, such as two continents or islands. It is usually formed by natural forces, like the movement of tectonic plates or erosion caused by water. An example is the Strait of Gibraltar, which was formed by the shifting of plates in Africa. There are vital man made canals as well. Suez Canal is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez and dividing Africa and Asia (and by extension, the Sinai Peninsula from the rest of Egypt). The 193.30-kilometre-long canal is a key trade route between Europe and Asia. Straits reduce the distance between regions, making transportation of goods and people more efficient. For example, the Suez Canal on the isthmus of Suez prevents the circumvention of Africa by ship for trade between Europe and Asia. Straits and isthmuses often have natural ports and harbours, providing easy access to the sea and facilitating trade.
The Malacca Strait is a crucial waterway connecting the Andaman Sea (Indian Ocean) and the South China Sea (Pacific Ocean). It runs between the Indonesian island of Sumatra to the west and peninsular (West) Malaysia and extreme southern Thailand to the east and has an area of about 65,000 square km. As the link between the Indian Ocean and the South China Sea, the Strait of Malacca is the shortest sea route between India and China and hence is one of the most heavily travelled shipping channels in the world. In early times, it helped to determine the direction of major Asian migrations of peoples through the Malay Archipelago.
The strait was successively controlled by the Arabs, the Portuguese, the Dutch, and the British. Singapore, one of the world’s most important ports, is situated at the strait’s southern end. Besides other ships, the strait affords passage to giant oil tankers voyaging between the Middle East oil fields and ports in Japan and elsewhere in East Asia. Two Thirds of China’s trade passes through the Strait of Malacca each year, including 80 per cent of its energy imports. There is an on-going dispute between China and several members of the ASEAN trade area over a large area in the South China Sea. Any escalation of the dispute may pose a threat to the navigability of the strait. There is no international regulatory body to ensure safety and free passage of the straits as they are controlled and managed by adjacent countries.
The United Nations Convention on the Law of the Sea (UNCLOS) was adopted in 1982. It lays down a comprehensive regime of law and order in the world’s oceans and seas establishing rules governing all uses of the oceans and their resources which include straits and channels as well. But the effective implementation of this regime depends on willing cooperation of sovereign nation states. Very often, these states are more interested in protecting their narrow national interests and fail to comprehend the larger need for global cooperation to facilitate global trade. Though UNCLOSW’s decisions are legally binding on its member states, militarily strong nations often violate those with impunity. For example, China does not honour the 2016 verdict on the South China Sea, and many regional countries complain about Chinese vessels in their waters.
The Malacca and Singapore Straits are within the territorial waters of Indonesia, Malaysia, and Singapore. As per the UNCLOS, the Straits’ safety and administration, including the maintenance of navigational aids, is the responsibility of these three countries. Because Singapore is home to a large number of trading companies, it enjoys the economic benefits of the Straits and has built and maintained lighthouses and buoys. Malaysia and Indonesia benefit far less, however, and are therefore shouldered with a relatively greater expense burden.
Recognizing that Japan is a main stakeholder, the Nippon Foundation has taken on some of that burden and for more than 40 years has provided support for safe navigation and the protection of the marine environment. Nevertheless, the arrangement is quite delicate and any adventurous move by China or any other regional power may destabilise the system. At a time when a stable, rule-bound, multipolar world order seems like a distant dream, global trade through straits and channels continues to be at the mercy of the wills and whims of controlling countries. Needless to say, this precarious situation cries out for effective global intervention.
(The writer is Associate Professor, Department of Political Science, Women’s Christian College, Kolkata)