Frontline’s chief executive Lars Barstad has stated that if a toll scheme were introduced for passage through the Strait of Hormuz, the cost would ultimately be borne by charterers — not shipowners. The comments were made in an interview with ShippingWatch.
Barstad Expects the Strait to Open
Despite addressing the financial mechanics of a potential toll, Barstad was clear about his broader expectation: he does not anticipate a toll scheme materialising. According to ShippingWatch, the Frontline CEO expects the situation at the Strait of Hormuz to resolve itself in the near term.
The Strait of Hormuz is one of the world’s most critical maritime chokepoints, through which a significant portion of global crude oil and LNG shipments pass. Any disruption to transit — whether through tolls, restrictions, or closures — carries substantial implications for energy markets and global shipping.
A Question of Who Pays
Barstad’s position on cost allocation reflects a well-established principle in shipping: extraordinary costs incurred during a voyage are typically passed down through charter agreements. Should a toll regime emerge, Barstad’s view, as reported by ShippingWatch, is that charterers would absorb that additional expense.
This perspective places charterers in a sensitive position. As parties who direct vessel deployment, they would face increased voyage costs at a time when route uncertainty in the Gulf region is already a consideration for planning and risk management.
Does This Matter to You?
The Strait of Hormuz carries a disproportionate share of global energy cargo, and any development affecting passage rights or costs touches a wide segment of the maritime supply chain. The question of toll liability — whether it falls on owners, charterers, or is shared — has direct implications for voyage economics, contract structures, and risk exposure.
For those involved in crude and product tanker movements, charter negotiations, or energy logistics through the Gulf, Barstad’s comments offer a signal about how at least one major tanker operator views the commercial responsibility in such a scenario. His expectation of a near-term resolution, as stated to ShippingWatch, may also inform near-term market sentiment, though the situation remains fluid.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: ShippingWatch
