Maritime Legal Update
– July 2026
Strait of Hormuz
transit payments and insurance cover – new guidance from the marine insurance
market
(prepared by Marek Czernis & Co. Law
Office)
Firm note – marine
insurance, war risks and sanctions compliance
The Law Office actively advises shipowners,
operators, charterers, shippers, P&I Clubs, insurers, brokers and financial
institutions regarding: marine insurance, war risks, P&I Insurance, Hull
& Machinery, sanctions, compliance, charterparties, and legal risk
management in conflict areas.
Recent developments concerning the Strait of
Hormuz have created a new category
of legal and insurance risk. Of particular importance is the emerging insurance
market position regarding transit tolls or similar payments demanded as a
condition for passage through this strategic waterway.
1. Introduction – new
insurance market guidance
According to the latest report published by
Shipping Telegraph, the marine insurance market has developed a new contractual
clause and accompanying guidance addressing situations where shipowners make
transit fees, tolls or similar payments connected with navigation through the
Strait of Hormuz.
Under the new approach insurers will not
provide cover for such payments or liabilities arising from them.
2. Background
The Strait of Hormuz remains one of the world’s
most important maritime choke points through
which substantial volumes of: crude oil, LNG, LPG, petrochemical products and
other energy commodities normally pass.
Growing geopolitical tensions and proposals to
require transit payments have created entirely new legal and insurance
challenges for the maritime industry.
3. Why are insurers
responding?
The new guidance is intended to help shipowners
and insurers navigate: rapidly changing sanctions regimes, armed conflict and
an increasingly uncertain regulatory environment.
The insurance market recognises that payments
made to sanctioned or otherwise problematic entities may expose parties to: sanctions
risks, regulatory exposure, insurance complications and reputational
concerns.
4. The new clause
The newly developed clause provides that
insurers will not cover transit fees, tolls or similar payments made in
connection with passage through the Strait of Hormuz.
The exclusion applies both to: the payments
themselves and liabilities arising from those payments.
5. Implications for
shipowners
Shipowners should carefully assess any payment
demands arising during transit through high-risk areas.
Before making any such payment, consideration
should be given to: P&I cover, Hull & Machinery insurance, sanctions
compliance, governing law and lender requirements.
The payment itself may affect available
insurance protection.
6. Relevance for
P&I and Hull & Machinery
Although the guidance primarily concerns
insurance, its implications extend across: P&I, Hull & Machinery, War
Risks, Cargo Insurance and reinsurance.
Owners should therefore consult: their P&I
Club, brokers, insurers and legal advisers before taking action.
7. Geopolitical
context
The guidance reflects broader developments
affecting shipping, including: armed conflict, sanctions, terrorism, cyber
threats and geopolitical instability.
Increasingly, legal compliance rather than
purely navigational considerations determines operational risk.
8. Implications for
contracts of carriage
The issue may also affect: charterparties, contracts
of affreightment, voyage planning, force majeure, deviation, frustration and
contractual obligations between owners, charterers and shippers.
Questions may arise as to whether refusal to
make such payments could justify route changes or non-performance.
These issues are likely to generate future
arbitration and litigation.
9. Law Office
conclusions
The insurance market’s new position
demonstrates that modern maritime risk extends well beyond traditional war
risks.
Key practical lessons include: careful
insurance analysis before making unusual payments, close coordination with
P&I Clubs and brokers, sanctions and compliance review, assessment of
contractual consequences and continuous monitoring of geopolitical
developments.
For shipowners operating in the Middle East,
legal and insurance risk management has become as important as navigational
risk management.