President Donald Trump has proposed a 20% fee on cargo passing through the Strait of Hormuz, which could negatively impact shipping traffic, executives warn.
The proposal may lead to a reduction in the number of ships transiting the strait, as traffic has already been dwindling.
Shipping giant Hapag-Lloyd stated that it is "fundamentally wrong" to charge tolls for passage through international waters.
Additionally, Jakob P. Larsen, BIMCO's chief safety and security officer, noted that the levy could prove a substantial burden on the shipping industry.
Vessel traffic through the Strait of Hormuz has sharply declined, and if tolls are enforced, it could lead to further decreases.
Iran mocks Trump's toll plan
Iranian Foreign Minister Abbas Araghchi mocked Trump's proposal, stating that Iran has always been the "guardian" of the Strait of Hormuz.
