Frequently asked questions (FAQs)
What is UNCLOS?
The United Nations Convention on the Law of the Sea (UNCLOS) is the international legal framework governing the use of the world’s oceans. It sets out the rights and responsibilities of States, including the rules that apply to navigation through straits used for international navigation. UNCLOS is a framework convention which codified Customary International Law (pre-existing, well established legal norms) and added some new elements.
Can ships be charged a toll to transit the Strait of Hormuz?
No. Under international law, there is no legal basis for imposing a toll or charge simply for exercising the right of transit through the Strait. Charges may only be levied where a vessel receives a specific service.
Do other international waterways charge transit fees?
Some waterways, such as the Suez and Panama Canals, charge transit fees because they are artificial canals operating under the national jurisdiction of Egypt and Panama within their sovereign land-based territory, respectively and their own legal regimes. However, International straits, such as the Strait of Hormuz, are governed by different rules under international law, and UNCLOS in particular.
Why would introducing a toll be problematic?
Charging ships simply to exercise their right of transit would undermine established principles of international maritime law, increase costs for global trade, and create
uncertainty for shipping and energy supply chains. It could also set a precedent for charges in other strategically important straits.
Can coastal States regulate navigation in the Strait?
Yes. Coastal States may adopt laws relating to navigational safety, traffic management, environmental protection and similar matters, provided these measures do not impede, discriminate against, or effectively deny the right of transit passage.
What if a charge is described as a ‘coordination’ or ‘safety’ fee rather than a toll?
The name given to a charge does not determine its legality. Under international law, charges cannot be imposed simply because a vessel is transiting a Strait.
Does this only affect shipping in the Gulf?
No. The principles at stake apply to all straits used for international navigation, of which there are many, notably the Strait of Malacca/Singapore, the Strait of Bandar Abbas (the entrance to the Red Sea/Suez Canal, the Strait of Gibraltar and the English Channel, which are also critical maritime chokepoints. Any attempt to impose unilateral transit charges in one strategic strait used for international navigation could create further uncertainty for the maintenance of rules-based global order and risks encouraging similar measures being emulated by other States elsewhere, with even more serious implications for global trade.
What is ICS calling for?
ICS is calling on all States to uphold international maritime law, protect the safety of seafarers, and ensure that commercial shipping can continue to transit the Strait of Hormuz safely, securely and without unlawful impediment.