Trump's Hormuz toll plan could backfire, global shipping industry warns — here's why

• Vessel traffic through the Strait dropped to just 14 ships on Sunday (including 4 crude tankers) compared to 37 vessels a week earlier, and industry leaders warn tolls would create further disincentive to use the route
• Shipping giant Hapag-Lloyd calls the toll plan 'fundamentally wrong' for international waters, noting it differs from Suez or Panama Canal fees which reflect major infrastructure investments
• The proposal marks an abrupt U.S. policy shift after the administration previously threatened sanctions against Oman for helping Iran establish tolling, with Iranian officials now mocking Trump's plan

Summary: Trump's Hormuz Toll Plan Faces Industry Backlash

President Donald Trump has proposed imposing a 20% levy on cargo ships transiting the Strait of Hormuz, positioning the U.S. as "THE GUARDIAN OF THE HORMUZ STRAIT" to reimburse costs for providing security. However, the global shipping industry warns this plan could significantly backfire.

Key Industry Concerns

Major shipping firms have strongly opposed the proposal. Hapag-Lloyd called it "fundamentally wrong" to charge tolls for international waters, distinguishing this from infrastructure-based fees at the Suez or Panama Canals. The Baltic and International Maritime Council (BIMCO) warned that increased costs would create "a further disincentive" to using the already troubled waterway.

Traffic Impact

Vessel traffic through the Strait has already plummeted. Kpler data shows only 14 ships (including four crude tankers) crossed on Sunday, down from 37 vessels the previous week. Industry experts fear tolls would further reduce traffic through this vital waterway.

Policy Reversal

The proposal represents an abrupt U-turn from the U.S. position. Treasury Secretary Scott Bessent previously stated in May that "all nations should reject" efforts to disrupt free commerce, and the administration threatened sanctions against Oman for potentially helping Iran establish tolls. The mid-June U.S.-Iran ceasefire deal explicitly prohibited Tehran from imposing charges on commercial ships.

Iranian Response

Iranian Foreign Minister Abbas Araghchi mocked the plan, stating Iran has "always been the GUARDIAN of the Strait" and calling 20% "too much," promising Iran would "be fair."

The deteriorating security situation, with hostilities resuming for three consecutive days, compounds concerns about the strait's viability as a commercial shipping route.