Iran has introduced a mandatory insurance requirement for vessels transiting the Strait of Hormuz, with shipping companies potentially facing new fees once an initial 60-day free period expires.
Vessels passing through the strait will be required to obtain insurance approved by Iran's newly established Persian Gulf Strait Authority (PGSA). According to the PGSA's General and Specific Terms and Conditions for Vessel Passage Through the Strait of Hormuz, the insurance will be provided free of charge during an initial 60-day negotiation period, after which fees may be introduced.
The insurance scheme would cover risks including vessel detention, inspection and cargo confiscation, although it would not cover damage caused by weapons, according to the PGSA terms and conditions. The document states that the authority reserves the right to introduce insurance fees in future and that vessel owners would then be required to purchase and renew coverage accordingly.
The PGSA terms and conditions state that the authority is responsible for processing transit applications and issuing passage permits for vessels using the strait. Passage is also permitted only via a designated route near Larak Island, and deviations from the route will be treated as violations, the statement says. It claims the authority may impose penalties, revoke passage permissions or take legal action in cases of non-compliance, according to the terms and conditions.
The PGSA terms and conditions had been submitted to the International Maritime Organization (IMO), which is involved in discussions on a longer-term framework for administering the strait, Lloyd's List reported.
The development comes amid ongoing discussions over shipping arrangements in the Strait of Hormuz following recent disruption to vessel traffic. Last week, analysts were warning of a backlog of about 550 vessels waiting to transit the waterway as operators assessed security conditions and the pace of reopening.
