Eight of the world’s largest shipping associations have raised concerns with the United Nations over potential tolls in the Strait of Hormuz, warning that such measures could have far-reaching consequences for global trade and economic stability.
International Concerns Over Potential Tolls
In a letter addressed to UN Secretary-General Antonio Guterres and International Maritime Organization (IMO) Secretary-General Arsenio Dominguez, the associations emphasized that imposing tolls or service fees in the Strait of Hormuz would violate international norms and disrupt the global economy.
The letter, sent to the UN on Monday but made public on Wednesday, stated that introducing compulsory charges for transit through the strait would be a significant departure from established international practice. It warned that such a move could undermine the legal framework governing straits used for international navigation and transit passage.
“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 letter said. It added that such a precedent could have long-term implications for the globally recognized rights of navigation.
Human Cost and Economic Uncertainty
The associations warned that the financial implications of tolls would extend beyond immediate trade disruptions. They highlighted that the establishment of a permanent de facto “toll booth” in the strait could lead to higher energy prices, inflation, and economic uncertainty. These impacts, they said, would ultimately affect livelihoods around the world.
“Ultimately, these impacts will carry a human cost, affecting livelihoods around the world. It is vital that we continue supporting the preservation of freedom of navigation as the foundation of international maritime governance,” the letter stated.
Signatories and Their Stance
The letter was signed by eight major shipping associations, including the Asian Shipowners Association, the Baltic and International Maritime Council, the Cruise Lines International Association, the European Shipowners Association, the International Chamber of Shipping, the International Association of Dry Cargo Shipowners, the International Association of Independent Tanker Owners, and the World Shipping Council.
IMOs Secretary-General Arsenio Dominguez previously told Al Jazeera that imposing fees in the strait would violate international law and set a “very detrimental” precedent for global shipping. “Countries do not have the right to introduce tolls or payments or charges on these straits,” he said in April.
Regional and Global Impacts
Deborah Elms, the head of trade policy at the Hinrich Foundation in Singapore, noted that a permanent toll system in the Strait of Hormuz would be felt most acutely in Asia, which relies heavily on energy exports from the Gulf. She warned that increased costs from Hormuz disruptions could lead to higher diesel fuel prices, shortages of fertilizers, and rising costs for plastics.
“Much of the oil currently shipped through Hormuz could be rerouted through pipelines, but natural gas remains a problem. This chokepoint is not a major problem for container shipping, but if tolls were applied to other waterways, containers and bulk carriers would be affected much more,” Elms said.
Iran’s De Facto Toll System
Iran has established a de facto maritime “toll booth” in the Strait of Hormuz following the US and Israel’s war against the country in late February. The Persian Gulf Strait Authority was formalized in May, marking the establishment of a fee regime.
Iran’s ability to launch attacks on commercial vessels in the region has granted it effective control over the waterway, giving it leverage in negotiations to end the war. Dozens of attacks have been carried out on vessels since the start of the conflict, with the IMO confirming 64 incidents and 17 deaths in the region.
Shipping across the Gulf remains severely disrupted more than five months into the conflict, with at least 6,000 seafarers still stranded in and around the strait as of late July, according to the IMO and UN Human Rights Chief Volker Turk.
International Agencies’ Limited Influence
Drew Thompson, a senior fellow at the S Rajaratnam School of International Studies in Singapore, noted that the IMO and other international agencies have limited ability to influence any deal involving Iran, Oman, and the US. Despite concerns over freedom of navigation, he said, international organizations and shipowners lack the leverage to affect Iran’s decisions.
“Despite clear interests in maintaining freedom of navigation in international straits, neither the UN, international organisations or shipowners have adequate leverage or ability to affect Iran’s calculus,” Thompson said.
He also noted that while President Trump has the means to use military force to prevent Iran from imposing tolls, his ambivalence about international law and freedom of navigation makes it uncertain whether he would take such action.
The situation in the Strait of Hormuz remains a critical issue for global trade and maritime governance. As the debate over tolls continues, the international community faces the challenge of balancing economic interests with the preservation of freedom of navigation.