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Lessons on toll-free shipping from straits of Malacca and Singapore
As Iran talks of levying tolls in the Strait of Hormuz, a model closer home shows how navigation in maritime chokepoints can be managed fairly and openly.
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The Strait of Malacca and Singapore is one of the world’s most critical chokepoints through which approximately 30 per cent of global trade passes.
PHOTO: EPA
Tara Davenport
One fallout of the Iran war could have serious ramifications for global trade.
In response to attacks by Israel and the United States, Iran announced that it would impose tolls on ships transiting the Strait of Hormuz. Ships reportedly faced charges of up to US$2 million (S$2.55 million) per transit, which can be paid in yuan or cryptocurrency. This is purportedly meant to cover the costs of navigational guidance and compensation for war damage.
