Shipowners Warn Hormuz Strait Toll Would Harm Global Livelihoods

Eight of the world's leading shipping associations have written to UN Secretary-General Antonio Guterres and International Maritime Organization (IMO) Secretary-General Arsenio Dominguez, urging them to reject tolls on transits through the Strait of Hormuz amid reports that Iran and Oman are close to an agreement on managing the crucial waterway.

In a letter sent Monday and made public Wednesday, the group representing shipowners and operators argued that imposing mandatory fees on vessels passing through the strait—whether as service charges or transit tolls—would mark a significant departure from established international practice.

"The imposition of mandatory transit fees, or service charges in the nature of a toll, at the Strait of Hormuz would be a significant departure from international practice," the letter stated. "Beyond the immediate financial impact on global trade, this would set a precedent that could undermine the international legal framework for straits used for navigation and transit."

The associations warned that internationally recognized freedom of navigation should not be "infringed or instrumentalized in broader political negotiations." They stressed that establishing a permanent "toll booth" would in practice lead to higher energy prices, inflation, and economic instability. "Such impacts would ultimately have a human cost, affecting livelihoods around the world," the letter said.

The eight signatories are: the Asian Shipowners' Association, the Baltic and International Maritime Council (BIMCO), the Cruise Lines International Association (CLIA), the European Community Shipowners' Associations, the International Chamber of Shipping (ICS), the International Dry Bulk Shipowners' Association, the International Association of Independent Tanker Owners, and the World Shipping Council (WSC).

Previously, Dominguez told Al Jazeera that tolling at the strait would violate international law and set a "very adverse" precedent for global shipping. "States are not entitled to impose tolls or charges for transit on these straits," he said in April.

Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, said the impact of a fixed tolling system would be felt most in Asia, which consumes the bulk of Gulf energy exports. "The cost increases from the disruption at Hormuz are visible in Asia: higher diesel prices and shortages, rapidly rising fertilizer costs, and increased costs for plastics," she told Al Jazeera.

According to Elms, much of the crude oil transiting Hormuz could be rerouted through pipelines, but natural gas remains problematic. "This chokepoint is not a big issue for container shipping, but if tolls are applied to other waterways, container and bulk carriers would be affected far more," she said.

Iran has established a de facto "toll booth" at the strait since the US and Israel launched their military campaign against the country in late February. Tehran formalized the tolling regime in May with the creation of the Persian Gulf Strait Authority.

Iran's ability to attack commercial vessels in the region has effectively given Tehran control of the waterway, providing strong leverage in negotiations over ending the war. Dozens of attacks on ships have been recorded since the conflict began, most attributed to Iranian forces. The IMO has confirmed 64 incidents and 17 deaths in the area since hostilities broke out.

Shipping through the Gulf remains severely disrupted after more than five months of conflict, with at least 6,000 seafarers stranded in and around the strait as of late July, according to the IMO and UN Human Rights chief Volker Turk. In the latest incident on Wednesday, a tanker reported hearing two explosions while passing through the strait, according to the UK Maritime Trade Operations (UKMTO).

Drew Thompson, senior fellow at the S Rajaratnam School of International Studies in Singapore, said the IMO and other international bodies have limited influence over any agreement involving Iran, Oman, and the US. "Despite clear interests in maintaining freedom of navigation in international straits, the UN, international organizations, or shipowners lack sufficient leverage or influence over Iran's calculations," he told Al Jazeera.

Thompson added that President Trump has the means to continue using force to pressure a "stubborn and resilient" Iran, but he has so far been vague about international law and freedom of navigation, making it unclear whether he would use political or military power to prevent Iran from imposing tolls on the strait.