The new economics of global waterways are taking shape, influenced by the dissolution of many agreed international norms, laws and key principles of maritime trade. The US–Iran War has many focused on negotiating a deal to keep the Strait of Hormuz toll-free, but little attention has been paid to the precedent such a toll may set. Disruption in the Strait of Hormuz has flow-on trade effects for Australia, as would any fees that might be applied for passage. The larger strategic challenge, however, is the precedent this would set for charging vessels to use maritime passageways in Australia's own region.
This explainer considers how such a shift in practice could affect three global waterways beyond the Strait of Hormuz: the Malacca Strait, the South China Sea and the Bering Strait.
