The proposed mechanism establishes a practical framework for the registration, deconfliction, prioritisation, facilitation, monitoring, verification and reporting of vessel movements through the Strait, with an initial focus on fertilisers and related raw materials.
A statement issued by United Nations Office for Project Services (UNOPS) Executive Director Jorge Moreira da Silva, who coordinates the UN Strait of Hormuz Task Force, highlights the urgent need for such practical action amid continued disruption to shipping which is putting global supply chains, livelihoods and food security at risk.
Building on ICC’s role in the Black Sea Grain Agreement in 2022, Mr Denton participates in the Hormuz Task Force, working alongside UNOPS, United Nations Trade and Development (UNCTAD) and the International Maritime Organization (IMO), with cooperation from other UN agencies.
Responding to the statement, Mr Denton said: “Continued disruption to shipping through the Strait is putting enormous pressure on global food security and economic stability. ICC’s engagement in the Task Force reflects the critical role of the private sector in working with partners to deliver practical solutions to issues impacting global trade flows and the lives and livelihoods of people everywhere who depend on them.”
The Task Force’s proposed mechanism is designed to provide a structured process for facilitating the movement of vessels through the Strait while building confidence among relevant parties. It is time-bound, exceptional and limited in scope, respects the rights and obligations of states under international law, and does not transfer sovereign authority to any participating party.
The mechanism comes as maritime traffic through the Strait has fallen by more than 95% compared with pre-war levels, according to the UNOPS statement. Rising energy, fertiliser and transport costs are putting additional pressure on farmers and consumers, while the UN World Food Programme estimates that almost 45 million people could fall into acute food insecurity as a result of the disruption.
ICC has consistently warned that disruption to the movement of energy, fertilisers and other essential goods through critical trade routes can have consequences far beyond the immediate region, putting further pressure on global supply chains and economic stability.
In his statement Mr Moreira da Silva said: “It is time to give a chance to an operational mechanism to build confidence and trust… There is no peaceful path through further escalation. The immediate priority must be to reduce risks, protect civilians and civilian infrastructure, build trust and confidence and restore safe and predictable movement through the Strait.”
Related resources
With the closure of the Strait of Hormuz, Svein Tore Holsether, President and CEO of the fertiliser-company, Yara International, joins ICC's Andrew Wilson to detail what fertiliser supply disruptions mean for food production and food security worldwide. Svein Tore explains the risk of crop failures in the world's most vulnerable regions, what governments can do to mitigate the damage and why this crisis should strengthen rather than weaken the case for climate action.
ICC Secretary General John W.H. Denton AO has warned of growing risks to global food security and the multilateral trading system, speaking at the Milken Institute Global Conference in Los Angeles and in a live interview with Bloomberg on the sidelines of the event.
