Cargo Stuck in the Strait of Hormuz? Don’t Pay Unfair Storage Fees

The situation in the Middle East is creating significant challenges for global trade. Specifically, export cargo currently on vessels inside or near the Strait of Hormuz is facing a new and frustrating problem.

It’s one thing for your cargo to be delayed; it’s another to be billed for that delay.

A recent circular from a major shipping line stated that because they are “unable to transit through the Strait of Hormuz”, they will charge shippers $47 USD per day, per container (TEU).

Before you pay, you need to understand the legal reality of these “on-board storage” fees.

Force Majeure is Not a Profit Center

When in a similar situation where a ship is prevented from moving, carriers often point to Force Majeure. This is a legal clause that excuses a party from performing their contract due to “acts of God” or unpredictable events beyond their control.

However, Force Majeure is a shield, not a sword.

• It may excuse the carrier for the delay.

• It does not give them a right to create a new billing stream.

This “storage fee” is not the same as an Emergency Bunker Surcharge (EBS) or a war risk surcharge. In those cases, the carrier is usually still attempting to complete the voyage. If the ship is simply drifting at sea with no plan, no ETA, and no strategy to move the goods, charging a daily fee is legally questionable.

The Logic of the Law

The legal argument for shippers is straightforward:

1. No Performance, No Pay: If the vessel isn’t moving and no alternative plan is being communicated, what service is the carrier providing for that $47 daily fee?

2. Mitigation: Carriers have a duty to mitigate (reduce) losses. If they aren’t offering to reroute or discharge the cargo, they aren’t fulfilling their duty.

3. Questionable Basis: If costs haven’t actually increased for the carrier while the ship sits idle, a new surcharge is difficult to justify in court.

What Shippers Should Do Right Now

If you receive a circular or an invoice for “on-board storage” due to the situation in the Strait of Hormuz, take these steps:

• Challenge the Charges Formally: Send a written protest immediately. Do not ignore the circular; silence can sometimes be seen as “acceptance”.

• Don’t Rush to Pay: Once you pay that invoice, you are validating the carrier’s logic. It is much harder to get your money back later than it is to dispute the bill now.

• Demand a Plan: Ask the carrier for an updated ETA and a clear mitigation strategy. If they can’t provide one, their right to charge you “storage” weakens.

Final Thoughts

In the face of international conflict, the shipping industry often tries to pass every cost down to the exporter. But international trade isn’t a one-way street. If your cargo is stuck and the carrier has no plan, you shouldn’t be the one paying for the ship to stand still.

What is your take? Would you challenge these fees, or do you see them as an unavoidable cost of doing business in a conflict zone?