All posts by Michael Haas

Shipping as a Repository of Strategic Vulnerability

The following article is special to our International Maritime Shipping Week. While we often discuss the threats to maritime shipping, this week looks at dangers arising from such global trade, and possible mitigations.

“Where the carcase is, there will the eagles be gathered together.”

                                            Julian S. Corbett, Some Principles of Maritime Strategy (1911)

In a global system marked above all by its complexity and interconnectedness, dependence on international shipping is universal. Yet some nations are far more vulnerable than others. As students of naval history well know, such vulnerability is often turned into a source of strategic leverage. To what extent can this leverage actually be exploited under 21st century conditions?

The needs of a nation, the opportunity of a foe
The needs of a nation, the opportunity of a foe

The globalized economy is, in a very real sense, a system of maritime exchange. As Thomas Friedman points out, as much as any other recent innovation, it was the shipping container that shaped our daily lives by making the economic transformation of the late 20th Century possible.[1] In the past two decades alone, the volume of sea-borne commerce has more than doubled, from 4 billion tons in 1990 to 8.7 billion tons in 2011. According to the International Maritime Organization, if the overall trend of trade growth observed over the last one and a half centuries continues, the figure will be 23 billion tons in 2060. And, while the exact share of global trade in goods that is moved by is a matter of some debate, it is sea well in excess of 75 percent by most reckonings. Further, it is clear that only cheap and plentiful shipping in a secure maritime environment can sustain this transformation. As a result, the stakes in international shipping are widespread.

But while any nation that wishes to prosper in the current global environment shares in the global dependency on shipping, the vulnerabilities that arise from it are distributed unevenly. This is mainly for two reasons: First, the degree to which specific nations sustain themselves by means of ship-borne imports, and to which they found their prosperity upon maritime exports, varies greatly. Secondly, depending inter alia on a country’s geopolitical setting, it will be more or less able to manipulate the degree to which it has to rely on shipping for its economic security. A resource-rich, continental-size state with landward access to sizeable markets – like Russia – has serious alternatives to maritime transportation. A small island nation with an export-oriented economy that runs on imported hydrocarbons – such as Taiwan – does not. It is where dependency gives rise to vulnerability that it turns into a potential source of leverage for outside powers.

Targeting Shipping for Strategic Effect

In what ways can vulnerabilities in the area of maritime transportation be exploited for strategic effect? There is, of course, a whole spectrum of options available to would-be-predators. Unilateral or multilateral sanctions have been a mechanism of choice since the end of the Cold War. But historically, it has been direct military action against the opponent´s shipping that has had the greatest impact on trade. Two main methods of waging war on commercial shipping can be distinguished, at least at an analytical level: (1) the blockade, and (2) guerre de course, or commerce raiding. The blockade relies on concentration and persistence to choke off the flow of sea-borne goods into enemy harbors, and as such will usually require some form of command of the sea. Commerce raiding, on the other hand, relies on dispersed, attritional attacks by individual vessels (or small groups of vessels), which makes it an attractive option for navies that find themselves in a position of inferiority. Both methods leverage the disruption of shipping to impose a cumulative toll on the adversary’s economy, which is expected to have a significant indirect impact on the war effort and/or erode the opponent´s will to resist.

Recsuing the survivorsHistorical examples of shipping being turned into a strategic lever are abundant. In the age of sail, preying on adversaries’ commerce was an integral part of most naval campaigns, including those of the Dutch Wars, the Seven Years’ War, and the Wars of the French Revolution. While it was seldom decisive, it was often “exceedingly painful,”[2] as Colin Gray observes. During the late 19th and early 20th centuries, innovations in naval technology all but brought to its termination the “close blockade” of enemy harbors while also providing means – the submarine, torpedo, and naval mine – that would transform guerre de course into a method of total warfare. Much ink has been spilled on Germany’s failed – and strategically counterproductive – attempts subdue Britain by way of Handelskrieg (the German variation of commerce raiding), while a slightly more specialized literature focuses on the “distant blockades” of Germany that were a key feature of British naval operations in both World Wars.  However the case of Japan is most the instructive for the purposes at hand.

An island nation with an extremely circumscribed resource base, Japan was utterly dependent on ship-borne imports of a range of raw (and precursor) materials. In a very real sense, the Empire´s huge naval modernization program during the 1930s was based on its maritime commerce with the United States. Among other things, the U.S. covered 80 percent of Japanese liquid fuel needs. Given its political and military trajectory, Japan´s demand for key commodities was highly inelastic. The only alternative to trade with the United States and other potential adversaries was the unilateral extraction of resources from Japan´s near abroad – which could decrease its dependence on this particular foreign power, but (crucially) not on maritime transportation. When war came, the U.S. was able to exploit this vulnerability to devastating effect. Despite the many operational and technical inadequacies revealed by its initial operations in 1941-42, the U.S. Navy´s all-out war on Japanese shipping eventually came as close to strategically decisive as can reasonably be expected from any indirect use of military power.[3] Aided by the dire lack of defensive measures on the part of the Imperial Japanese armed forces, U.S. submarines alone sent more than 1,100 Japanese merchantmen to the bottom, and nearly as many were sunk by aircraft and mines. By the spring of 1945, Japanese sea-borne logistics had virtually ceased to exist, and so had Japan´s ability to sustain its war effort.

It has been suggested that other attempts throughout history at disrupting shipping flows might well have been equally successful in exploiting strategic vulnerabilities, had it not been for the predators´ “technical incapacity, operational ineptitude, and policy incompetence […] in the conduct of commerce raiding.”[4] Whether this assessment is accurate or not, there is little doubt that – despite the moral opprobrium that has often accompanied attacks on civilian vessels – the vulnerable dependence on sea-borne trade can be exploited to considerable effect. What relevance this finding might possess in an era of global economic integration is, however, much less clear.

Execute against China?

Until very recently, the explosion of maritime trade supporting economic globalization has not resulted in a resurgence of military strategies based on the (selective) disruption of international shipping. An important exception has been Iran´s focus on the Strait of Hormuz, which has played a critical role in Iranian strategic thinking since the 1980s. But it is the rise of China that has reignited naval strategists´ interest in shipping as a source of strategic vulnerability.

One set of scenarios that has been debated in detail involves Chinese offensive operations against Taiwan´s economic lifeline.  Given the island´s vulnerable dependency on shipping and the enduring limitations of the People´s Liberation Army with regard to a full-scale invasion, it is hardly surprising that the imposition of a coercive blockade should hold some appeal in PLA planning circles.

Considerably greater attention has been attracted, however, by the possibility that the People´s Republic might itself become the target of offensive military action against the sea-borne commerce on which the integrity of its economic model stamds. After all, 90 percent of China’s exports and 90 percent of its liquid fuel imports – which, as Sean Mirski observes are “functionally irreplaceable”[5] – are transported by sea. The oft-cited ‘Malacca dilemma’ is but one expression of a suspicion that now unites an increasing number of strategic thinkers, both Chinese and foreign: namely, that its dependence on maritime transportation may prove to be China´s Achilles’ heel on its way to greatness.

While the vulnerability of the PRC’s sea lines of communications has become an official justification for naval expansion and a rallying cry for naval nationalists, it is also a focal point for U.S. strategizing in the context of increasing access challenges in the Western Pacific. Thus, a blockade of Chinese (or rather China-bound) shipping has been debated both as an element of, and as an alternative to, the AirSea Battle Concept that is designed to enable operations in the face of an anti-access/area-denial challenge, such as U.S. military planners anticipate in case of conflict along the Chinese periphery.

Shipping LanesWhile Western treatments of the subject tend to agree that a blockade would be militarily feasible – given an adequate investment of resources – and could have a very considerable impact on the Chinese economy, the assumptions under which they arrive at these conclusions are extremely restrictive. For example, Mirski assumes that (1) the U.S.-China conflict in question would not be limited in scope, yet would stop well short of nuclear use, (2) the U.S. would find itself in the position of defender of the status quo against a blatantly aggressive China, (3) the U.S. would be able to build a coalition that includes Russia, India, and Japan; and (4) under these conditions, a ‘sink-on-sight’ policy towards civilian vessels in China’s near seas would be politically viable. Even with these preconditions, he concludes that despite the American blockade “China would be able to meet its military needs indefinitely.”[6]

Recent publications also points to changes in the nature of international shipping itself as potential complicating factors: in a prospective blockade scenario, few – if any – civilian vessels would fly the Chinese flag and, given the practice of selling and reselling cargo on spot markets, a ship´s final destination might not be known until it actually enters port.[7] But while Mirski’s proposal of instituting a system of digital navigational certification is ingenious, he dodges the broader question of how the United States and the nations of the Asia-Pacific would deal with the myriad repercussions of what would amount to a major disruption of the globalized economic sphere for an extended period of time.

Conclusion: Return of the commerce raiders?

If nothing else, the current debate about a U.S. naval blockade of China reveals that – much like their predecessors in past centuries – strategists in a globalized era see shipping as a repository of strategic vulnerability, particularly in cases of high-intensity conflict between great or medium-size powers. But while the potential leverage to be gained from nations’ dependence on international shipping is perhaps greater than ever before, the actual leverage might not correspond to planners’ expectations. The sources of this disconnect lie primarily in the political and economic context in which any concerted military action against sea-borne trade would be embedded. Given the U.S. Navy’s determined stewardship of freedom of navigation, the U.S. in particular would find itself on the wrong side of the norms it has been upholding for the past 60 years. And while the economic fall-out of any great power war is likely to be significant, the willful disruption of trade flows for strategic effect would only serve to accentuate the costs to regional allies and global trading partners.

As a result, unrestricted commerce warfare of the type pursued by the U.S. Navy against Japan in 1941-45 is just not in the cards. On the other hand, anything short of a strategically counterproductive ‘sink-on-sight’ policy might not produce sufficient strategic impact to justify the cost of embarking on such a risky course of action in the first place. Finally, once we move beyond the context of open interstate warfare, multilateral economic sanctions offer the possibility of causing many of the same effects at markedly lower cost to the attacker’s international standing.

Overall, the recent surge of interest in economic warfare strategies does little to encourage faith in the potential decisiveness of military actions against globalized trade, and serves to underline the practical and political challenges presented by any attempt at leveraging the vulnerabilities of a major trading power under 21st-century conditions. While the dependence on international shipping poses many risks, the strategic leverage it provides as a direct result of its crucial contribution to the prosperity of nations is now more apparent than real.

Michael Haas is a researcher with the Global Security Team at the Center for Security Studies, ETH Zurich. The views presented above are his alone. Michael tweets @the_final_stand.

[1] Thomas L. Friedman (2006), The World Is Flat: The Globalised World in the Twenty-first Century (London: Penguin), 468.

[2] Colin S. Gray (1992), The Leverage of Sea Power: The Strategic Advantage of Navies in War (New York: Free Press), 13.

[3] Robert A. Pape (1996), Bombing to Win: Air Power and Coercion in War (Ithaca, NY: Cornell UP), 100-01.

[4] Gray 1992, 13.

[5] Sean Mirski (2013), “Stranglehold: The Context, Conduct and Consequences of an American Naval Blockade of China,” Journal of Strategic Studies 36:3, 389.

[6] Mirski 2013, 416.

[7] Ibid., 402; Gabriel B. Collins and William S. Murray (2008), “No Oil for the Lamps of China?,” Naval War College Review 61:2, 84.

China and the Falklands Analogy: Preparing for the Wrong War?

A more appropriate Falklands model for the Chinese?
         A more appropriate Falklands model for the Chinese?

If the Pentagon’s reading of China’s interest in “Falklands-style” campaigns of long-range power projection is accurate, the task of maintaining a U.S.-centric security order in East Asia may turn out to be more manageable than expected. But the PLA Navy cannot be counted on to dilute its efforts to the extent DoD now thinks plausible.

To this day, Britain’s 1982 campaign to recapture the Falkland Islands remains among the most relevant examples both of long-range maritime power projection with limited means, and of a weaker power using niche capabilities to complicate operational access and inflict significant damage on the opponent’s projection forces.

As a valued colleague of mine has noted in a recent post here at the NextWar Blog, DoD’s latest Annual Report on Military and Security Developments Involving the People’s Republic of China explicitly picks up on the Falklands analogy in its discussion of China’s future expeditionary capabilities:

“The PLA Navy’s goal over the coming decades is to become a stronger regional force that is able to project power across the globe for high-intensity operations over a period of several months, similar to the United Kingdom’s deployment to the South Atlantic to retake the Falkland Islands in the early 1980s.”

The analogy as such is hardly new, of course, and has already spawned a small literature of its own, including Lyle Goldstein’s insightful piece in Survival and a thorough analysis by Christopher Yung. A more recent contribution by CDR Jim Griffin, USN in Proceedings makes many of the same arguments in a more implicit fashion. All three treatments suggest that the Falklands experience has considerable relevance for the PLAN in both strategic and war-fighting terms. What is new in the Pentagon report, however, is the rather one-dimensional spin it imparts to the PLAN’s adoption of the Falklands campaign as a potential paradigm for future operations.

If we accept DoD’s take on the analogy, we would expect that China will cast itself unambiguously in the role of the expeditionary power (i.e., Great Britain) and, over the next several decades, spare no efforts to attain at least a limited capability for sustained power projection over transoceanic distances. It is certainly true that this would serve the desire of many Chinese naval enthusiasts to climb the rungs of the global naval hierarchy, Felix Seidler’s discussion of which I find most useful. However, it is not yet clear that the Pentagon’s interpretation accurately reflects what Chinese strategists have in mind when they plan for “Falklands-style” campaigns.

As Robert Ross argues in his 2009 piece on “China’s Naval Nationalism,” a blue-water orientation is not a natural strategic choice for a continental power that faces multiple potential threat axes on land as well as from the sea. For such actors, access-denial strategies, broadly conceived, tend to provide a much better return on investment. Thus, to the extent that the operational requirements for access-denial and long-range power projection differ, the strong Mahanian tendency that is evident in the Chinese discourse about maritime strategy would seem to give rise to an additional diffusion of effort (brown/green-water and blue-water) within the more fundamental diffusion of effort between land and sea. (It should be noted here that, for all his insistence of control over maritime communications, such a course would have been utterly foreign to Mahan.)

In other words, given China’s current position and the many uncertainties it continues to face, any attempt at replicating the capability profile of a “Rank 3”navy [“conducting one major ‘out of area operation and (…) engaging in high-level naval operations in closer ocean areas” (Grove 1990: 238)] would amount to a distraction from its key strategic dilemmas. A transoceanic expeditionary capability, in particular, would almost certainly constitute a misinvestment of limited resources. In a very real sense, every yuan invested in dedicated long-range projection forces is a yuan not invested in the control over China’s immediate regional environment. And every Type 052D sailing the Mediterranean on anything other than a one-off port visit will mean several destroyers not sailing the West Pacific.

Of course, this is not to say that China won’t do its potential opponents the favor of going down this risky path. Speaking in broad historical terms, rising continental powers do it all the time – and suffer the consequences. But Goldstein’s and Yung’s works on the PLA’s engagement with the Falklands experience suggest that PLA planners have so far emphasized an “Argentina Plus” approach that combines the far more compatible paradigms of robust access-denial and regional power-projection, and may continue to do so for the foreseeable future.

If such is the case, there will still be more than enough to write about in the Pentagon’s next Annual Report to Congress. As far as analogies go, a much more formidable Argentina that chooses to threaten U.S. interests where it is strong seems to me a far more worrying prospect than a cut-rate Great Britain that is all over the map.

Michael Haas is a Graduate Research Assistant at the Peace Research Institute Frankfurt (PRIF), Germany. The views presented here are his alone and do not reflect an institutional perspective.