Shipping Organizations Warn UN Hormuz Fees Would be Difficult Precedent
Eight of the world’s leading shipping trade associations, representing elements from containerships to tankers, bulkers, and passenger ships, released a letter submitted to the United Nations warning of the dangers of permitting the imposition of tolls or fees in the Strait of Hormuz. The groups released the letter, which was sent on Monday, August 3, as rumors circulated that Oman and Iran have reached terms for an agreement to manage the Strait, and U.S. officials said a deal is imminent.
The groups reiterated their concerns over potential fees in the letter, which is addressed to UN Secretary General Antonio Guterres and IMO Secretary General Arsenio Dominguez. In addition to the direct costs and the threats to supply chains, economic stability, and energy security, the groups, which include the International Chamber of Shipping, ASA, BIMCO, CLIA, ECSA, INTERCARGO, INTERTANKO, and the World Shipping Council, warned of the precedent and potential broader effects on the established international practices for the freedom of navigation.
“Introducing compulsory charges for transit, or service fees that are a toll in all but name, through the Strait of Hormuz would represent a significant departure from established international practice,” states the letter.
The shipping groups assert that, “Once such a precedent is established, it becomes increasingly difficult to resist similar measures elsewhere, creating uncertainty for international shipping and global commerce.” They warn that it would establish a precedent that could undermine the internationally recognized legal framework governing straits used for international navigation and transit passage.
They are calling on the leaders of the UN and the IMO to ensure that internationally recognized rights of navigation are not compromised or “used as part of broader political negotiations.” They assert that it is vital that everyone continue supporting the preservation of the freedom of navigation as “the foundation of international maritime governance.”
The Trump administration has wavered throughout the war on exactly what freedom of navigation would look like in an agreement with Iran. CENTCOM is asserting today that the “southern route” remains free and open for all commercial vessels and that over the past three months, “U.S. forces have assisted more than 1,000 vessels in successfully transiting the strait despite unwarranted Iranian aggression.”
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Despite CENTCOM’s assurances that the route is open “today,” tracking data continues to show vessels avoiding the route near Oman. There continue to be reports of vessels being shot at or struck if they attempt the transit.
It is being widely reported that Oman and Iran have agreed to split control of the Strait, with Iran overseeing all inbound traffic to the Persian Gulf. It is unclear how this would be implemented. So far, the Trump administration has not commented on the reports other than to say a deal is close.
