Strait of Hormuz tolls would harm livelihoods worldwide, shipowners warn

Eight of the world’s largest shipping associations have urged the United Nations to oppose tolls in the Strait of Hormuz amid reports that Iran and Oman are nearing a deal to manage the critical waterway.

In a letter to UN Secretary-General Antonio Guterres and International Maritime Organization Secretary-General Arsenio Dominguez, the group said that allowing authorities to charge vessels to transit the strait would violate international norms and harm the global economy.

“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 groups representing shipowners and operators said in the letter, which was sent to the UN on Monday but made public on Wednesday.

“Beyond the immediate financial implications for global trade, it would establish a precedent that could undermine the internationally recognised legal framework governing straits used for international navigation and transit passage.”

Internationally recognised rights of navigation should not be “compromised or used as part of broader political negotiations,” the group said, warning that a permanent de facto “toll booth” would lead to higher energy prices, inflation and economic uncertainty.

“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 group said in the letter.

The letter’s eight signatories are 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.

Dominguez, the head of the UN’s maritime agency, previously told Al Jazeera that imposing fees in the strait would violate international law and set a “very detrimental” precedent for global shipping.