As talks between Oman and Iran continue over a plan to reopen the vital Strait of Hormuz the shipping sector has written to the International Maritime Organization (IMO) to demand there are no fees charged for future transit.

While the US have been promoting talks as part and parcel of its efforts to end the conflict the talks remain between Iran and neighbour Oman and it remained on a knife edge as despite Oman’s plans Iran has demands of its own which are likely not to be acceptable to the USA which would baulk at Iran having any major control over the waterway through which 20% of the world’s oil and gas is transited.

Oman has submitted a proposal to Iran creating regional management of the Strait and only voluntary fees for transit, rather than Iran’s idea of maintaining control of the waterway and charging for its use.

The proposal calls for a joint regional scheme to manage the strait with voluntary fees to help fund the cost of managing navigation, environmental protection, search and rescue and other services.

However, the plan differs significantly from that pushed by Iran. Under its plans Iran would gain full control over all inbound shipping.

Outbound shipping would then follow a route between Iran and Oman, with exit clearance granted through Oman after notifying Iran.

There is little belief that Iran will give ground meaning the deal is likely unlikely to be agreed, leaving the Strait still closed.

As the impasse continued shipping leaders including International Chamber of Shipping, ASA, BIMCO, CLIA, ECSA, INTERCARGO, INTERTANKO, WSC, have written to the IMO to  make it clear that they will not pay a toll top use the Strait.

The letter stated: “We are writing to you to reiterate our concerns regarding the potential imposition of tolls or service fees in the Strait of Hormuz. As the International Maritime Organization has highlighted repeatedly, since the beginning of the conflict seafarers have been operating in an environment of heightened uncertainty, with some sustaining injuries and tragically losing their lives while carrying out their work at sea.

“The safety of seafarers who make global trade possible should be non-negotiable. So too must be freedom of navigation. The ability of merchant ships to navigate international waterways safely, predictably and without unnecessary impediment is fundamental to resilient supply chains, economic stability and energy security.

“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. Beyond the immediate financial implications for global trade, it would establish a precedent that could undermine the internationally recognised legal framework governing straits used for international navigation and transit passage.

“Once such a precedent is established, it becomes increasingly difficult to resist similar measures elsewhere, creating uncertainty for international shipping and global commerce. Any additional costs imposed on maritime transport inevitably flow through international supply chains. These consequences extend beyond shipping costs, contributing to higher energy prices, higher inflation, and higher economic uncertainty. Ultimately, these impacts will carry a human cost, affecting livelihoods around the world.”

The letter added: “It is vital that we continue supporting the preservation of freedom of navigation as the foundation of international maritime governance. As discussions regarding regional security and conflict resolution take place, we must ensure that internationally recognised rights of navigation are not compromised or used as part of broader political negotiations.”

Oman has submitted a proposal to Iran creating regional management of the Strait and only voluntary fees for transit, rather than Iran’s idea of maintaining control of the waterway and charging for its use.