Shipping Industry Warns Against Potential Hormuz Transit Fees

The global shipping industry is urging the United Nations and the International Maritime Organization (IMO) to oppose any attempt to impose compulsory tolls or transit fees in the Strait of Hormuz, warning that such a move would undermine international law, disrupt global trade, and set a dangerous precedent for other strategic waterways.

In a joint open letter addressed to UN Secretary-General António Guterres and IMO Secretary-General Arsenio Dominguez, eight of the world’s leading shipping organizations said the principle of freedom of navigation through international straits must not become a bargaining chip in ongoing regional negotiations. 

The letter comes amid reports that Iran and Oman are negotiating a new framework governing shipping through the Strait of Hormuz, with discussions reportedly including some form of Iranian oversight of vessel movements. While details remain under negotiation, industry groups moved quickly to draw a red line against any mandatory charges for transit.

“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,” the organizations wrote. 

The shipping industry’s intervention follows weeks of uncertainty over the future management of the Strait of Hormuz. The U.S.-Iran memorandum signed in June calls for Iran and Oman to negotiate the Strait’s future administration and maritime services, but does not define what that would entail. That ambiguity has fueled industry concerns over everything from vessel traffic management and reporting requirements to the possibility of future transit fees, prompting shipowners and maritime organizations to insist that any new framework preserve freedom of navigation and Hormuz’s longstanding toll-free status under the United Nations Convention on the Law of the Sea (UNCLOS).

Signatories to the letter include the Asian Shipowners’ Association (ASA), BIMCO, Cruise Lines International Association (CLIA), European Shipowners (ECSA), International Chamber of Shipping (ICS), INTERCARGO, INTERTANKO, and the World Shipping Council (WSC). 

The groups argue that mandatory transit fees would extend far beyond shipping, ultimately raising transportation costs throughout global supply chains and contributing to higher energy prices, inflation, and broader economic uncertainty.

Beyond the economic impact, the industry says the larger concern is the precedent such a move could establish under international maritime law.

“The ability of merchant ships to navigate international waterways safely, predictably and without unnecessary impediment is fundamental to resilient supply chains, economic stability and energy security,” the letter states. It adds that once a precedent for compulsory charges is established in one international strait, “it becomes increasingly difficult to resist similar measures elsewhere.” 

The organizations also note that the shipping industry has already paid a heavy price during months of conflict in the region.

“As the International Maritime Organization has highlighted repeatedly, since the beginning of the conflict seafarers have been operating in an environment of heightened uncertainty, with some sustaining injuries and tragically losing their lives while carrying out their work at sea,” the letter states. “The safety of seafarers who make global trade possible should be non-negotiable.” 

The latest intervention builds on guidance the industry issued in May, when BIMCO, ICS, INTERTANKO, OCIMF, INTERCARGO, and IMCA published a comprehensive operational guide for vessels transiting Hormuz during the conflict. That guidance warned operators to consider both security and navigational risks, citing threats ranging from missile attacks and electronic warfare to GNSS jamming, AIS spoofing, mine risks, and extreme traffic congestion.

Critically, it also cautioned that alternative routing outside the Strait’s established Traffic Separation Scheme could present significant navigational challenges because surrounding waters were not designed to accommodate large volumes of opposing commercial traffic. 

While the May guidance focused on safely navigating an active conflict zone, the new letter shifts attention to preserving the legal framework governing maritime chokepoints. In April, an IMO spokesperson said imposing tolls on ships transiting the Strait of Hormuz would “set a dangerous precedent,” noting there is no international agreement permitting such charges for passage through international straits.

“We stand ready to work with the International Maritime Organization and the wider United Nations to ensure that long-established legal principles governing international straits, that are protected under international law, most notably through the United Nations Convention on the Law of the Sea (UNCLOS), are not weakened or altered,” the organizations wrote. 

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