60-Day Deadline for Free Passage Through the Strait of Hormuz

Iran: "Free Passage Without Fees for 60 Days"

Strait of Hormuz Handles 20% of Global Maritime Oil Shipments

Shipping Companies Likely to Increase Freight Rates if Passage Fees Are Imposed

Unavoidable Impact on Raw Material Transport and Product Exports

Although the Strait of Hormuz has reopened following the end of hostilities between the United States and Iran, it is expected to take more time for the passage of ships to return to full normalcy due to the need for mine removal and ongoing bottlenecks. Additionally, concerns are growing within the industry that energy and logistics costs may rise, as the Iranian government has announced it might start imposing fees for passage through the strait after 60 days.

Among Korean vessels trapped in the Strait of Hormuz following the Middle East war, HMM's ultra-large crude carrier (VLCC) "Universal Winner" was the first to exit the strait. On the 10th, the ship arrived off the coast of Ulsan for crude oil unloading and was approaching the buoy, an offshore crude oil unloading facility. Photo by Yonhap News Agency

According to the memorandum of understanding (MOU) between the United States and Iran, previously released by the U.S. administration on June 19, "Iran will make every effort to guarantee bidirectional free passage of merchant vessels through the Strait of Hormuz without imposing fees for 60 days, and civilian passage will be restored immediately."

This statement does not mean that Iran will immediately begin collecting tolls or charging fees for management and maritime services. However, it leaves room for interpretation that Iran could impose passage fees after the 60-day period of free transit ends.

If Iran actually implements passage fees for the strait, increases in both energy prices and logistics costs are expected. Prior to the war, the Strait of Hormuz was a key energy transportation route, accounting for about 20% of the world's maritime crude oil shipments. In Korea's case, the dependency is even higher, with roughly 70% of crude oil and 20% of liquefied natural gas (LNG) being imported from the Middle East.

Shipping companies are highly likely to reflect the wartime spike in insurance premiums and any new passage fees in their freight rates. This could impact industries such as refining, petrochemicals, and automobiles, which either transport raw materials through the Middle East or export their products via this route. Tae Hwang Kim, professor of International Trade at Myongji University, stated, "When Iran initially mentioned a $1 per barrel passage fee, it seemed like a negotiation tactic, but now there is a real possibility that it could actually be imposed. Although there are views that charging passage fees in the Strait of Hormuz is not permitted under international law, if Iran imposes them under the guise of management fees, shipping companies will likely pass the costs on to cargo owners."

Although free passage is guaranteed for 60 days, it is still uncertain whether Korean vessels can immediately exit the strait. This is due to expected bottlenecks from a concentration of vessels as well as remaining procedures like mine removal. Furthermore, the resumption of travel for Korean-flagged ships must comply with guidance from the Ministry of Oceans and Fisheries, but it is reported that specific instructions have yet to be issued.

According to the government, there are currently 24 Korean-flagged vessels and 137 Korean sailors inside the Strait of Hormuz. This includes HMM's cargo ship Namu, which is undergoing repairs at Dubai Port following an Iranian attack.

An official from the shipping industry commented, "While the United States and Iran have announced the reopening, there are still many unresolved issues in the Strait of Hormuz. Political variables such as the Iranian Revolutionary Guard remain, and there are daily limits on passage volume, so it could take several months to achieve full normalization."

This content was produced with the assistance of AI translation services.