Iranian parliament passes legislation to collect transit fees, COSCO Shipping Development hits the daily limit up

(Source: Caixin)

          Huayuan Securities Research Report points out that Iran's parliament has passed legislation officially imposing transit fees on commercial ships passing through the Strait of Hormuz, institutionalizing the previously temporary fee mechanism, marking a significant escalation in geopolitical tensions.            

On April 7th, shipping-related concepts surged and rose sharply, with COSCO SHIPPING Development (601866.SH) hitting the daily limit during trading, while China International Marine Containers (000039.SZ), COSCO SHIPPING Energy Transportation (600026.SH), Antong Holdings (600179.SH), Huaguang Yuanhai (920351.BJ), Xingtong Co., Ltd. (603209.SH), China Merchants South China Oil (601975.SH), and others followed suit.

On the news front, Huayuan Securities Research Report states that Iran’s parliament has passed legislation officially imposing transit fees on ships passing through the Strait of Hormuz, institutionalizing the previously temporary fee mechanism, marking a major upgrade in geopolitical tensions.

According to a recent report by CCTV International News, Aladdin Burojedi, a member of Iran’s Parliament’s National Security and Foreign Policy Committee, said to the media on March 30 that Iran plans to charge ships passing through the Strait of Hormuz, and once approved by parliament, the Iranian government will begin enforcement. Burojedi said that countries like Turkey, Egypt, Panama, etc., also charge transit fees, “which is standard international practice,” and Iran has historically provided “preferential treatment” to passing ships for decades.

Additionally, according to Lianhe Zaobao, insiders say that the Iranian Revolutionary Guard has begun collecting “transit fees” from ships passing through the Strait of Hormuz, prioritizing the passage of ships identified as friendly nations, while ships perceived as hostile may face threats or attacks. Bloomberg reported on Thursday (April 2) that Iran has established a fairly “formal” toll system for crossing the strait, which has gradually come to light. Shipping companies must first contact an intermediary associated with the Revolutionary Guard, providing data such as ship owner, registration nationality, cargo manifest, destination, crew list, and automatic navigation certification system, which is then reviewed by the Revolutionary Guard’s Hormuz Province Command to verify that the ship is not related to Israel, the U.S., or other Iran-designated enemies.

CITIC Securities states that the outbreak of US-Iran conflict greatly enhances the “energy security” demands of major consuming countries. The asset attributes of oil tanker fleets are gradually shifting from “low-yield, strong cycle” to “necessity strategic assets,” with room for full pricing still remaining. Leading oil transportation companies are expected to see profits reach new highs by 2026.

Everbright Securities believes that investment can focus on the dual main lines of “benefiting from high oil prices + performance certainty,” including the broader energy sector such as coal, coal chemical industry, oil and gas, shipping ports, which directly benefit from rising oil prices.