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Iran and Oman are reportedly in the final stage of drafting a highly-anticipated agreement on the Strait of Hormuz as confirmed by Iranian officials.
In the midst of a potential deal, the eight major international shipping associations have raised their concerns regarding the possibility of introduction of compulsory tolls and service charges for vessels passing through strategically important Hormuz.
The shipping industry wrote a joint open letter addressed to UN chief Antonio Guterres and International Maritime Organization (IMO) Secretary-General Arsenio Dominguez. The letter was sent Monday and published Wednesday by the International Chamber of Shipping.
The signatories included the Asian Shipowners’ Association, BIMCO (Baltic and International Maritime Council), Cruise Lines International Association, European Shipowners, International Chamber of Shipping, INTERCARGO (International Association of Dry Cargo Shipowners), INTERTANKO (International Association of Independent Tanker Owners), and the World Shipping Council.
As per the associations, the imposition of such tolls would jeopardise freedom of navigation and disrupt 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 letter said.
The shipping industry also cautioned that if Iran were to impose such charges, it would set the precedent for other international waterways, thereby weakening the legal framework governing transit passage.
Moreover, the high transportation costs would spill into international supply chains and trade, exacerbating inflationary pressures and economic uncertainty.
The announcement comes as Muscat and Tehran are nearing to finalize the deal. The reports suggested Tehran would have control over ships entering the Gulf through the strategic waterway.
