Malacca and the Spratly SLOCs are the main routes. Japan, Australia, and the nations of Southeast Asia send over 40 percent of their trade by sea through these narrow waterways. Their economic vitality depends on free access to these sea lanes. U.S. prosperity in turn relies on the economic health of our trade partners. Most vessels plying the region fly flags of convenience.
Japanese interests own more ships operating in the region than any other country.
U.S. interests are third behind Japan and Greece in terms of capacity owned passing through the Straits of Malacca in 1993. Over three quarters of U.S.-owned ships in SE Asia flag out. There is often little correlation between nationality of registration and the nationality of owners, and these factors often have little relationship to the economies shipping or receiving cargoes. Policies that would try to discriminate among shipping on the basis of nationality are based on a false premise. There is a legitmate concern for safety in the crowded, shallow, and narrow Straits of Malacca.