Strait of Malacca in the spotlight amid Hormuz tensions: Why it is crucial to global shipping

FILE PHOTO: A container ship enters the Singapore Strait for the Strait of Malacca, as tourists stand at mainland Asia's southern most point in Johor, Malaysia November 12, 2016. Picture taken November 12, 2016.  REUTERS/Henning Gloystein/File Photo

The disruption to shipping through the Strait of Hormuz has brought renewed attention to the Strait of Malacca, one of the world’s busiest maritime corridors that carries more than a fifth of global seaborne trade.

The narrow waterway between Malaysia and Indonesia, linking the Indian and Pacific oceans via Singapore, has emerged as a critical link in global supply chains as vessels alter routes amid tensions in the Middle East.

According to thesun.my, industry experts say the Strait of Malacca is already experiencing spillover effects from disruptions in both the Red Sea and the Strait of Hormuz, although Malaysian ports have so far managed the additional traffic.

Route changes add pressure, but ports coping

Mohamed Safwan Othman, president of the Malaysia Shipowners’ Association, as quoted by thesun.my, said rerouted vessels are putting additional pressure on one of the world’s most important shipping lanes.

“The spillover effect must be taken into account as vessels are forced to change course. This will cause congestion at ports, which must be handled by port operators to ensure cargo movement is not disrupted,” Safwan was quoted a saying by the news outlet.

He reportedly added that both the Red Sea crisis and the latest tensions in the Strait of Hormuz have resulted in more ships changing course.

“However, the congestion that occurred has been managed well by ports in Malaysia,” he said.

Safwan noted that around US$7 trillion worth of trade passes through the Strait of Malacca annually, making it central to Malaysia’s shipping industry and Asian commerce.

Strategic gateway connecting East and West

According to the news outlet, Safwan said the strait’s geographical advantage lies in providing the shortest and most efficient sea route connecting China, Japan and South Korea with markets in India, Africa and Europe.

He highlighted the importance of Malaysian ports such as Port Klang and Port of Tanjung Pelepas, which depend on uninterrupted shipping services.

Safwan also stressed that cooperation between Malaysia, Indonesia and Singapore remains vital for maintaining navigational safety, environmental protection and emergency preparedness, including responses to oil spills.

‘Malacca is not an alternative to Hormuz’

Separately, Mohammad Khairuddin Othman, research fellow at the Universiti Utara Malaysia Asian Institute of International Affairs and Diplomacy, as quoted by thesun.my said the Strait of Malacca should not be viewed as a replacement for the Strait of Hormuz.

Instead, he described it as Asia’s second major maritime chokepoint in the region’s energy and trade supply chain.

“The Strait of Malacca is more accurately seen as the second chokepoint in the energy and trade supply chain to Asia. A large portion of oil passing through Hormuz would continue its voyage through Malacca before reaching consumer countries,” he told thesun.my.

Khairuddin explained that while Hormuz serves as the principal export route for Gulf crude oil and liquefied natural gas, Malacca acts as the corridor carrying those shipments onward to East Asian markets.

Higher congestion could raise accident risks

According to news outlet, Khairuddin warned that uncertainty in the Strait of Hormuz could force shipping operators to adjust schedules, slow vessels or wait for updated security assessments, leading to unpredictable arrival patterns in the Strait of Malacca.

“This could cause vessel arrival patterns in the Strait of Malacca to become uncertain, increasing congestion at certain times, especially along major shipping lanes and key ports.”

He reportedly cautioned that increased traffic in the waterway’s limited navigation space could heighten the risks of vessel collisions, navigational accidents and oil spills.

Call for stronger maritime surveillance

Khairuddin also said the Strait of Malacca continues to face security threats, including illegal ship-to-ship transfers, sea robbery and smuggling, despite significant improvements in maritime security over the past two decades through joint patrols.

He urged Malaysia to strengthen its Maritime Domain Awareness by expanding real-time monitoring and information sharing.

According to thesun.my, he recommended greater use of technologies such as the Automatic Identification System (AIS), coastal surveillance radar, Vessel Traffic Management Systems, maritime drones, satellite monitoring and remote sensing, alongside deeper operational cooperation with Indonesia and Singapore.

He emphasized that safeguarding Asia’s energy flows increasingly depends on the resilience of the entire maritime supply chain rather than the security of a single chokepoint.

What is Strait of Malacca

The Strait of Malacca is a 900-km (550-mile) waterway between Indonesia, Malaysia, Thailand and Singapore that provides the shortest maritime route linking East Asia with the Middle East and Europe. As one of the world’s busiest shipping lanes, it serves as a critical corridor for global trade and energy supplies.

At its narrowest point in the Phillips Channel within the Singapore Strait, the channel is just 1.7 miles (2.7 km) wide, creating a natural bottleneck for maritime traffic.

Parts of the strait are relatively shallow, with depths ranging between 25 and 27 metres (82–90 feet).

These depth restrictions limit access for some of the world’s largest ships, prompting certain ultra-large vessels to avoid the route altogether and instead sail around Indonesia.

Although this alternative route bypasses the Strait of Malacca, it significantly lengthens voyage times, delays cargo deliveries and increases transportation costs.

According to the US Energy Information Administration, as per Reuters April 23 report, the Strait of Malacca is the world’s largest oil transit chokepoint, surpassing even the Strait of Hormuz.

In the first half of 2025, around 23.2 million barrels of oil per day (bpd) passed through the Strait of Malacca, accounting for 29% of global maritime oil flows. By comparison, about 20.9 million bpd transited through the Strait of Hormuz.

Separately, the Center for Strategic and International Studies estimates that the Strait of Hormuz handles nearly 22% of global maritime trade, carrying crude oil and liquefied natural gas from the Middle East to major Asian importers such as China, Japan and South Korea.

Alternative route controversy raises fresh tensions over Strait of Hormuz

A controversy over an alternative shipping route through the Strait of Hormuz has reignited tensions in the Gulf, with Iran warning that any attempt by commercial vessels to bypass its preferred transit corridor could complicate efforts to fully reopen one of the world’s most important energy chokepoints.

Iranian Foreign Minister Abbas Araghchi said ships should continue using the navigation arrangements established by Tehran, cautioning that alternative routing would only increase regional tensions.

“Any attempt to adopt new or separate arrangements compared to what is underway by the Islamic Republic of Iran, will only lead to more complicated situations and delays in the reopening of the Strait of Hormuz, and will increase the tensions,” Araghchi said.

Oman’s alternative route draws Tehran’s ire

The warning came days after Oman announced an alternative navigation route hugging its coastline, saying the arrangement had been developed in coordination with the International Maritime Organization.

Tehran criticized the move, insisting that vessels should continue transiting through the corridor close to Iran’s shoreline. Although dozens of ships have recently sailed along the Omani side of the waterway, Iran has maintained that any changes to navigation arrangements must be agreed upon through consultations with Oman and other Gulf states.

The published memorandum states that the future administration of the Strait of Hormuz will be determined through dialogue with regional countries while remaining consistent with international law.

Military tensions persist despite ceasefire

The diplomatic dispute unfolded as military exchanges between Iran and the United States continued despite a ceasefire that took effect in April following a Pakistan-mediated agreement aimed at ending the conflict that erupted after U.S. and Israeli military operations against Iran in February.

The United States Central Command said it struck 10 Iranian military targets in response to what it described as continued Iranian aggression against commercial shipping.

Iran said it retaliated by targeting U.S. military bases in Kuwait and Bahrain, prompting condemnation from both Gulf nations.

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Iran tightens control over shipping

Iran’s Islamic Revolutionary Guard Corps said it is enforcing stricter traffic control measures in the Strait of Hormuz and warned that vessels violating its navigation directives would face tougher action than before.

Tehran has also indicated it is discussing a permanent tolling system that would formalize its oversight of commercial shipping through the waterway.

Although the Strait of Hormuz lies within both Iranian and Omani territorial waters, customary international law generally guarantees transit passage and does not permit either country to unilaterally block commercial shipping or impose transit fees.

Global energy route

The Strait of Hormuz links the Persian Gulf with the Gulf of Oman and normally carries around 20% of global oil and liquefied natural gas (LNG) supplies, making it one of the world’s most strategically important maritime corridors.

Before the conflict, roughly 138 ships transited the strait each day, according to the Joint Maritime Information Centre. At the height of the disruption following the outbreak of hostilities in February, daily traffic fell to single digits as Iran effectively restricted commercial navigation.

The waterway reopened on June 19 after a memorandum of understanding signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian came into effect, easing a nearly four-month disruption that had driven up crude oil prices and raised concerns over global energy security.

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