The Strait of Malacca, located between Indonesia, Malaysia, and Singapore, links the Indian Ocean to the South China Sea and Pacific Ocean. Malacca is the shortest sea route between Persian Gulf suppliers and the Asian markets –notably China, Japan, South Korea, and the Pacific Rim. Oil shipments through the Strait of Malacca supply China and Indonesia, two of the world’s most populous nations. It is the key chokepoint in Asia with an estimated 15 million bbl/d flow in 2006.

Source: U.S. Government Click here to zoom

At its narrowest point in the Phillips Channel of the Singapore Strait, Malacca is only 1.7 miles wide creating a natural bottleneck, as well as potential for collisions, grounding, or oil spills. Recent reports by the International Chamber of Commerce show that piracy, including attempted theft and hijackings, are a constant threat to tankers in the Strait of Malacca.

Over 50,000 vessels transit the Strait of Malacca per year. If the strait were blocked, nearly half of the world's fleet would be required to reroute around the Indonesian archipelago through Lombok Strait, located between the islands of Bali and Lombok, or the Sunda Strait, located between Java and Sumatra. Malaysian, Indonesian and Saudi companies signed a contract in 2007 to build a $7 billion pipeline across the north of Malaysia and southern border of Thailand to reduce 20 percent of tanker traffic through the Strait of Malacca.

Incidents of Piracy and Armed Robbery from 2000 to 2005