President Donald Trump has offered US protection in the Strait of Hormuz for a 20% fee on cargo moving through the waterway. The proposal comes as shipping companies have been calling for greater protection for vessels to safely cross through the critical trade route controlled by Iran.

Questions of Legality and Feasibility

The proposal raises several questions of legality and feasibility. John McCown, a senior fellow at the Center for Maritime Strategy, questioned how the fee would be calculated. “Is it 20% of what our cost on the blockade is, somehow divided by the number of ships?” McCown asked. Other possibilities include 20% of the costs the US Navy incurs to escort cargo or a 20% charge on the value of the goods being transported.

The White House did not respond to requests for further details. Insurers may also play a role in determining the viability of the proposal, as they may refuse to cover boats transiting the Strait of Hormuz if they deem the security risks too high.

International Law and Precedent

The Strait of Hormuz is an international waterway where vessels have the right of free passage under international law. James Kraska, a professor of international maritime law at the US Naval War College, noted that Iran has previously imposed service fees on vessels, but these charges are not currently in place. Kraska said that the practice of imposing fees on vessels is not permitted under international law.

However, Kraska added that if the US were to offer protection to vessels on a voluntary basis, it could comply with international law. Bjorn Vang Jensen, executive industry adviser at Xeneta, a freight analytics platform, noted that the practice of charging fees for passing through certain waterways has historical precedent, citing the example of Denmark charging foreign vessels for passing through the Øresund from the 1400s to the 1800s.

Original reporting: 40/29 / KHBS (NW Arkansas) — read the source article.