The United Nations agency responsible for creating and maintaining a regulatory framework for international shipping said Monday it opposes any transit fees for commercial vessels passing through the Strait of Hormuz.

The statement by an International Maritime Organization spokesperson came after President Donald Trump earlier Monday proposed a 20% cargo fee on all commercial vessels passing through the strategic waterway to reimburse the U.S. Navy for providing security and escorts.

“We have always been consistent on our stance on fees — IMO stands firmly against charging fees for passage through straits used for international navigation,” the spokesperson told CNBC. “There is no legal basis through which to introduce mandatory tolls simply to transit through a strait.”

Nordic American Tankers CEO Herbjorn Hansson told CNBC that Trump’s 20% fee is unrealistic, adding that Iran and the U.S. have to agree on how the strait will be administered.

“Iran is suffering, America is suffering, 192 countries outside the Hormuz Strait are suffering,” Hansson said.

In June, months after U.S. and Israel launched a campaign targeting Iran’s political leadership and military infrastructure, Tehran implemented tolls of up to $2 million per vessel passing through the strait, one of the world’s key energy chokepoints.

Tehran assured it would use its “best efforts” to ensure the safe passage of commercial vessels through the strait for 60 days under the memorandum of understanding it signed with the U.S. on June 17. But it has interpreted that to mean the U.S. officially recognizes its right to manage and regulate traffic through the waterway.

More here

Tagged: Middle East BACK TO HOMEPAGE