UN shipping agency backs free navigation in natural straits, rejects Iran tolls

The International Maritime Organization has reaffirmed its support for freedom of navigation in key shipping lanes by passing a resolution led by Singapore while rejecting Iran's tolls or prescribed route for passing through the Strait of Hormuz.

During a weeklong meeting July 6-10, members of the IMO Council -- the UN shipping agency's executive organ -- agreed to reiterate that commercial ships' navigational rights through vital shipping lanes should be respected.

The resolution was proposed by Singapore, Indonesia and Malaysia, which control the Straits of Malacca and Singapore, as well as over two dozens of other countries, including the UAE, and some European, African and other Asian-Pacific countries.

Coastal states of crucial sea trade lanes, particularly natural straits, must comply with international laws, including the UN Convention on the Law of the Sea when managing the water ways, according to the resolution.

"As an open and trade-dependent economy, Singapore supports a stable, rules-based international order to ensure uninterrupted global trade, resilient supply chains, and food and energy security," the Maritime and Port Authority of Singapore said in a statement July 10.

"The resolution reflects Singapore's longstanding commitment to upholding international law, and to safeguarding an open, stable and predictable maritime environment."

The IMO adopted the resolution after Iran, which didn't ratify the UNCLOS, floated the idea to charge service fees, including some related to mandatory insurance, for future passage through the Strait of Hormuz after its 60-day truce with the US ends in August.

After its war with the US began on Feb. 28, the country had set up a toll system for Hormuz transits before suspending it due to the truce.

S&P Global Commodities at Sea data shows oil flows averaged 25 million b/d via Malacca and 19 million b/d via Hormuz in 2025, making them the world's two most important choke points.

Singapore, Malaysia and Indonesia have ratified the UNCLOS. A voluntary Aids to Navigation Fund was established in 2007 to finance some essential facilities in the Straits of Malacca and Singapore, backed by Japan's private sector.

Iran actions

Separately, IMO Council members agreed to oppose Iran's efforts to charge tolls and service fees in Hormuz passage as well as to request that ships use a route set up by Iran.

Tehran has warned shipping companies not to use non-Iranian routes in Hormuz or risk being attacked after setting up a new government agency, the Persian Gulf Strait Authority, to manage the trade lane.

In June, the IMO briefly activated its scheme to evacuate ships stranded in the Persian Gulf in coordination with Oman before suspending it after a Singapore-flagged container ship was attacked after using the Omani route.