Eight major shipping associations have written to the United Nations and the International Maritime Organization, urging them to reject any proposed compulsory transit charges through the Strait of Hormuz, warning that such fees would undermine the legal framework governing international straits and drive up energy prices worldwide.
Who signed the letter and what does it say?
The open letter, dated August 3, 2026, and addressed to UN Secretary-General Antonio Guterres and IMO Secretary-General Arsenio Dominguez, was signed by the Asian Shipowners’ Association, BIMCO, Cruise Lines International Association, European Shipowners, the International Chamber of Shipping, INTERCARGO, INTERTANKO and the World Shipping Council. The groups argue that introducing compulsory charges, or service fees functioning as tolls, would mark a significant departure from established international practice, coming as Iran continues to restrict and monetise passage through a chokepoint handling roughly one-fifth of global oil and gas supply.
What has the IMO already said about the legal basis for tolls?
The industry intervention follows a statement from IMO Secretary-General Dominguez on July 23, 2026, in which he said no mechanism within international law allows countries to charge ships wishing to cross the Strait of Hormuz. The IMO had earlier rejected a US plan for a 20 percent levy on vessel cargo transiting the strait, ruling that such a measure would violate the UN Convention on the Law of the Sea and customary international law. The shipping groups now want that position reinforced at the highest diplomatic level.
What has Iran implemented on the water since the conflict began?
Since US and Israeli strikes on Iran on February 28, 2026, Tehran has effectively restricted shipping through its territorial waters, with vessels required to seek Iranian approval, use designated lanes, and in some cases pay tolls running into the low millions of dollars per transit. By early May 2026, Iran had established the Persian Gulf Strait Authority to coordinate ship movements and launched an insurance scheme called “Hormuz Safe,” which functions as either an additional fee or a rebranded transit toll. The system reportedly applies different rules by flag, with friendly states such as Russia and China receiving favourable treatment, while private deals for specific vessels have reportedly reached up to USD 150,000 per transit.
What diplomatic proposals are currently on the table?
Senior US and Chinese officials confirmed in May 2026 that no country or organisation should be allowed to charge tolls for passage through international waterways like Hormuz, a rare point of alignment between the two powers. Oman has floated a voluntary maritime fund concept under which shipping companies would pay service fees for strait management, environmental protection and rescue operations, though Tehran reportedly insists on controlling traffic and collecting transit fees directly. A report from August 4, 2026, suggested Europe could help fund a proposal to reopen Hormuz, with fees financing navigation management and environmental protection, though the shipping groups’ letter makes clear that any compulsory charge, regardless of payer or label, crosses a red line.
Why are shipowners worried about a precedent being set?
The central concern among shipowners is contagion, with fears that a Hormuz toll model could spread to the Strait of Malacca, Bab el-Mandeb and other critical waterways, forcing multiple charges across single voyages and reshaping global trade economics. The IMO’s evacuation plan for stranded seafarers remains paused as of early August, with 136 vessels and an estimated 6,000 seafarers already evacuated from the Persian Gulf since late June.
