MARITIME TRADE & SHIPPING
Russia, China Veto UN Resolution on Strait of Hormuz as Trump Deadline Looms
Russia, China Veto UN Resolution on Strait of Hormuz as Trump Deadline Looms
By Emetena Ikuku, Waterways News Correspondent
The United Nations Security Council on Tuesday failed to secure the Strait of Hormuz after Russia and China vetoed a resolution that sought to guarantee the safety and reopening of the critical waterway, deepening a maritime crisis that now directly threatens Nigeria’s crude oil export revenues and global energy supply chains.
The resolution, tabled by Bahrain, drew 11 votes in favour before being struck down by the two permanent members. Pakistan and Colombia chose to abstain.
The proposed measure had called for the protection of commercial shipping lanes through the strategically vital passage, urged coordinated defensive action by states dependent on the route, and demanded that Iran immediately halt attacks on merchant vessels and end its interference with freedom of navigation. Earlier drafts had reportedly contained language that could have authorised the use of force to secure the waterway, but those provisions were significantly diluted in a last-minute bid to prevent a veto — an effort that ultimately proved unsuccessful.
Reacting sharply to the outcome, U.S. Ambassador Mike Waltz accused Moscow and Beijing of choosing Iran over the stability of global trade. “No one should tolerate holding the global economy at risk, but today Russia and China did,” he warned, adding that the council’s failure to act sends a dangerous signal about threats to international waterways. Bahrain’s Foreign Minister, Abdullatif bin Rashid Al Zayani, echoed that sentiment, cautioning that the Security Council’s inaction weakens the broader multilateral framework for maritime security.
Iran’s Ambassador to the UN, Amir Saeid Iravani, pushed back, arguing that the resolution would have handed Washington and its allies legal cover for what he described as unlawful conduct in the region.
The vote came as Washington intensified pressure on Tehran over its conduct in the Gulf. President Donald Trump set a deadline of 8 p.m. Eastern Time on Tuesday, warning of potential strikes against critical infrastructure — including power plants and bridges — if Iran did not comply with demands to reopen the strait. White House Press Secretary Karoline Leavitt declined to spell out the next steps, saying only the president knows what action follows as the clock runs down.
The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, remains one of the world’s most consequential maritime chokepoints. Analysts estimate that roughly 20 to 21 percent of global oil trade transits the waterway daily, making any sustained disruption a direct threat to energy markets worldwide — and to Nigeria, which competes for buyers in the same markets that depend on Gulf crude flows.
NIGERIA WATCH
What This Means for Nigeria
Russia and China on Tuesday vetoed a United Nations Security Council resolution seeking to ensure the reopening and security of the Strait of Hormuz, escalating tensions just hours before a deadline issued by Donald Trump to Iran. The resolution, introduced by Bahrain, received 11 votes in favour but was rejected after the two permanent members exercised their veto power. Pakistan and Colombia abstained from the vote.
The proposed measure called for the protection of commercial shipping routes through the strategic waterway and urged coordinated defensive efforts by states reliant on the passage. It also demanded that Iran immediately halt attacks on merchant vessels and cease interference with freedom of navigation. Earlier drafts of the resolution reportedly included provisions that could have authorised the use of force to secure the waterway. However, the language was significantly watered down in an attempt to avoid a veto, ultimately limiting the scope to defensive measures.
Reacting to the development, U.S. Ambassador Mike Waltz criticised Russia and China, accusing them of siding with Iran and undermining efforts to safeguard global trade routes. “No one should tolerate holding the global economy at risk, but today Russia and China did,” he said, warning that the failure to adopt the resolution sends a dangerous signal regarding threats to international waterways.
Bahrain’s Foreign Minister, Abdullatif bin Rashid Al Zayani, also expressed disappointment, stating that inaction by the council weakens global efforts to maintain maritime security. Iran’s Ambassador to the UN, Amir Saeid Iravani, defended his country’s position, arguing that the resolution would have emboldened the United States and its allies to pursue what he described as unlawful actions.
The vote comes amid heightened tensions in the Gulf region, with Washington warning of possible military action if Iran fails to comply with its demands. President Trump has given Iran until 8 p.m. Eastern Time to reopen the Strait of Hormuz or face potential strikes targeting critical infrastructure, including power plants and bridges. Speaking on the situation, White House Press Secretary Karoline Leavitt said only the president knows the next course of action as the deadline approaches.
For Nigeria, the stakes are considerable. A prolonged shutdown of the Strait of Hormuz could trigger a spike in global oil prices that, paradoxically, may temporarily boost receipts for Nigeria’s crude exports — but would simultaneously raise the cost of petroleum product imports at a time when the Dangote Refinery is still ramping up to full domestic supply capacity. Freight rates on all routes passing through or influenced by Gulf shipping patterns would also climb, adding pressure to Nigeria’s import-dependent economy.
The Strait of Hormuz remains one of the world’s most critical transit routes, with disruptions posing significant risks to global energy supplies and economic stability.
Waterways News | Lagos
How Liberia Turn Its Flag into a Maritime Goldmine — But the Profits Keep Sailing Away
The world’s largest ship registry sits in a West African nation with a $670 per capita income. The ships are everywhere. The money, largely, is not.
By Oghenewoke Osaweren | Waterways News
In the high-pressure world of global shipping, few decisions carry as much financial weight as where a vessel is registered. And right now, more shipowners are making that decision in favour of Liberia than any other country on earth.
As of June 2026, the Liberia-flagged fleet stood at 307.3 million gross tonnage — making the Liberian International Ship and Corporate Registry (LISCR) the first registry in history to cross the 300 million GT threshold. It is the third consecutive year Liberia has held the title of the world’s largest shipping registry, widening its lead over its nearest rival by nearly 45 million gross tons.
The numbers are staggering. The Liberian Ship Registry now accounts for 17 percent of the global fleet, with 6,092 vessels flying its flag, and it represents 28 percent of global newbuilding gross tonnage — meaning more than one in four new ships entering the global fleet now does so under the Liberian colours.
But what pulls the world’s shipowners to a flag planted in one of West Africa’s most impoverished nations? And, critically, what is Liberia itself getting out of the arrangement?
THE MAGNET: WHAT SHIPOWNERS ARE REALLY BUYING
Established in 1948, the Liberian Registry has built its reputation on maritime safety, environmental standards, and administrative efficiency. Yet the hard commercial draw has always been simpler than that: cost reduction on a massive scale.
Shipowners choose Liberia’s open registry for lower taxes and reduced registration fees that can significantly slash operational costs, alongside the freedom to hire multinational crews at competitive wages — bypassing the higher labour costs imposed by national registries in Europe, Asia, or the Americas.
There are no crew nationality restrictions on Liberian vessels, and taxes are assessed at conservative rates based on net tonnage. For owners managing fleets of dozens of vessels, the cumulative savings run into tens of millions of dollars annually.
The registry is administered from Vienna, Virginia, with offices in New York, Hamburg, Hong Kong, London, Piraeus, Tokyo, Zurich, Singapore, and Monrovia, providing clients with 24-hour service. The bureaucratic friction that delays other registries simply does not exist here — a Liberian ship-owning corporation can typically be formed on the same working day instructions are received.
THE CHINA CARD
Beyond the traditional cost advantages, a newer and increasingly consequential incentive has emerged. Under a renewed maritime agreement with the People’s Republic of China, Liberian-flag vessels now enjoy preferential tonnage dues rates at Chinese ports, alongside expedited customs procedures and simplified port formalities — advantages that competing flags such as the Marshall Islands do not enjoy.
In a global shipping economy where China handles a dominant share of cargo, this diplomatic edge is no small commercial consideration.
LIBERIA’S GAIN — ON PAPER
Proponents of the arrangement argue that Liberia benefits meaningfully from the registry’s prestige and revenue. The Liberia Maritime Authority has described holding the world’s largest registry title as both an honour and a responsibility, with Commissioner Neto Zarzar Lighe Sr. pledging commitment to innovation and best practices expected of a Category ‘A’ member of the International Maritime Organisation’s Council.
The registry is reported to generate approximately 25 percent of Liberia’s national income — a figure that, if accurate, would represent a remarkable dependency on a single offshore arrangement. Liberian-flagged vessels also carry more than one-third of the oil imported into the United States, giving Liberia an invisible but powerful role in American energy supply chains.
THE UNCOMFORTABLE ARITHMETIC
But the glowing statistics mask a deeply troubling reality.
According to the Liberia Revenue Authority’s own records, the country received just US$12 million in maritime revenue in the 2019-2020 tax year from LISCR — amounting to only 2.75 percent of its total domestic revenue. More recent estimates place Liberia’s annual take from the registry at approximately $20 million.
Against a backdrop where Liberia’s total GDP stood at $4.75 billion in 2024, with a per capita income of just $670, the question becomes stark: who is really benefiting from the world’s most powerful shipping flag?
When over 130 countries representing 90 percent of global GDP came together in 2021 to agree a historic minimum corporate tax rate of 15 percent for multinationals, shipping alone was excluded — an arrangement that continues to shield the registry’s clients from the kind of global tax reform that would otherwise erode their savings.
The structural explanation is revealing. LISCR is a purpose-made limited liability company registered in Delaware and based in Virginia, with US nationals as exclusive investors under Liberian law — meaning the entity that manages the world’s largest shipping registry is legally and operationally American, not Liberian.
Even the United States Ambassador to Liberia has publicly acknowledged the gap, stating that “the revenue, jobs, and expertise generated by LISCR have the potential to benefit Liberia’s economy in nearly every sector” — while urging that maritime revenues be transparently incorporated into the national budget. The diplomatic phrasing barely conceals the implicit admission: the potential is there, but the delivery has fallen short.
A FLAG THAT FLIES EVERYWHERE, PROFITS THAT LAND NOWHERE NEAR MONROVIA
Liberian investigative voices have grown increasingly vocal, with local media questioning whether registry revenues are ending up in the pockets of a privileged few, including top officials and their political lawyers, rather than flowing into public coffers.
The ITF has long argued that the FOC system lets foreign shipowners use the Liberian flag to benefit from lax regulations and lower operating expenses, resulting in labour exploitation with little meaningful economic benefit returning to Liberia itself.
The paradox is stark enough to have earned a name in academic and policy circles. The downward drag that tax havens brought to government revenues worldwide was once commonly referred to as the “Liberian Problem.”
THE BIGGER PICTURE FOR AFRICA
For maritime-watchers across West Africa — and in Nigeria, where the inland waterways sector continues to seek investment and regulatory frameworks that actually serve national interests — the Liberian registry story carries a cautionary resonance.
A nation can sit at the centre of global maritime commerce, command the allegiance of 6,000 vessels flying its flag across every ocean, carry a third of America’s oil imports, and still struggle to translate that extraordinary leverage into domestic development. The ships sail. The registry grows. The flag waves on every sea.
The revenue, largely, waves goodbye with them.
waterwaysnews.ng covers rivers, coasts, creeks, and the full sweep of Nigeria’s blue economy.
Maritime Security and Safety
Strait of Hormuz to Reopen as US, Iran Agree Initial Deal to End Three-Month War — Global Shipping Braces for Major Shift
Strait of Hormuz to Reopen as US, Iran Agree Initial Deal to End Three-Month War — Global Shipping Braces for Major Shift
By Okeoghene Onoriobe | Waterways News
In a development poised to reshape global maritime trade, the United States and the Islamic Republic of Iran have announced an initial agreement to end more than three months of war, with provisions to reopen the Strait of Hormuz — one of the world’s most strategically vital shipping corridors.
US President Donald Trump confirmed the breakthrough on Monday, June 15, 2026, saying the deal with Iran was “now complete” in a post on social media.
According to reports, Trump authorised the toll-free opening of the Strait of Hormuz and the simultaneous removal of the United States Naval blockade on Iran . Pakistan’s Prime Minister Shehbaz Sharif also confirmed the agreement, announcing that “the Peace Deal between the United States of America and the Islamic Republic of Iran has been REACHED”. He added that both sides had declared the immediate and permanent termination of military operations on all fronts, including in Lebanon, and noted that mediators would facilitate further meetings in the coming week to lay groundwork for technical talks ahead of an official signing ceremony (NewsNation) , expected on Friday, June 19, in Switzerland.
Background: A Conflict That Shook Global Trade
The crisis began on 28 February 2026 and has lasted more than three months, drawing in Iran, the United States, Israel and shipping companies worldwide. The fallout included a global fuel crisis, a US-led aerial campaign on Iranian targets, a US naval blockade of Iran, and a US naval escort operation, alongside the formation of a Persian Gulf Strait Authority. The human cost was severe: at least 17 merchant ships were damaged, with 12 seafarers killed or missing, and a port worker killed in Bahrai.
Before the war, the Strait of Hormuz carried roughly 25% of the world’s seaborne oil trade and 20% of global LNG shipments. Its closure sent shockwaves through energy markets, with vessel owners suspending operations rather than risk transiting the corridor.
What This Means for Shipping and Energy Markets
Analysts note the reopening carries major implications for tanker operators, freight rates and crude exporters. The Persian Gulf region remains the world’s largest producer of oil and gas, almost all of which is exported by tankers crossing the Strait of Hormuz — a route effectively closed for over three months, with disruptions rippling through the global economy and pushing commodity prices sharply higher.
Nigeria Watch
For Nigeria, a reopened Strait of Hormuz could ease the pressure on global freight rates and insurance premiums that have weighed on Nigerian crude exports and import costs since the crisis began. NIMASA and Nigerian shipowners reliant on chartered tonnage may see a gradual normalisation of war-risk premiums affecting vessels calling at Nigerian ports.
However, stakeholders are advised to await the formal signing — slated for June 19 in Switzerland — and confirmation of safe-passage protocols before adjusting freight and insurance arrangements, as the agreement remains an initial framework with several issues still under negotiation.
Editor's Choice
Liberia Crosses Historic 300 Million GT Threshold, Tightens Grip on Global Ship Registry Leadership
Liberia Crosses Historic 300 Million GT Threshold, Tightens Grip on Global Ship Registry Leadership
By Ighoyota Onaibre | Waterways News
The Liberian Ship Registry has written another chapter into global maritime history, becoming the first flag administration in the world to surpass 300 million gross tons (GT) in registered fleet size, a feat that further entrenches its standing as the largest and fastest-growing ship registry on the planet.
Figures released by international maritime data and intelligence provider Clarksons show that the Liberian-flagged fleet, administered on behalf of the Liberian Maritime Authority by the Liberian International Ship and Corporate Registry (LISCR), hit 307.3 million gross tons as of June 8, 2026 — a tonnage figure that dwarfs the combined capacity of several traditional maritime nations and underscores just how dominant the West African nation’s flag has become in the eyes of global shipowners.
From Challenger to Undisputed Leader
For Nigerian maritime stakeholders watching the global flag-state landscape, the scale of Liberia’s ascent is worth pausing on. As recently as June 2023, Liberia overtook Panama — a registry that had held the title of the world’s largest for three uninterrupted decades, stretching back to 1993 — to become the new number one by gross tonnage. At that point, Liberia’s fleet stood at 246.5 million GT.
In the three years since dethroning Panama, Liberia has added more than 60 million gross tons to its books, a rate of expansion that few open registries, including those competing aggressively for newbuilding business, have managed to match. The Registry now accounts for roughly 17 percent of the entire global merchant fleet by tonnage, with 6,092 vessels currently flying the Liberian flag, according to data from IHS.
Newbuildings Driving the Surge
Behind the headline number lies a structural shift in how shipowners are choosing to flag their vessels, particularly newly constructed ones. Over the past two years, Liberia has firmly established itself as the preferred flag of choice for new tonnage entering the water, capturing an extraordinary 28 percent of all global newbuilding gross tonnage during that period.
This newbuilding dominance has translated directly into the Registry’s most recent growth figures: between June 2025 and June 2026 alone, the Liberian fleet expanded by 9.3 percent in tonnage — a growth rate that, on a fleet this size, represents tens of millions of additional gross tons in just twelve months.
LISCR Leadership Reacts
Reacting to the milestone, LISCR Chief Executive Officer, Alfonso Castillero, attributed the achievement to the Registry’s global workforce and the sustained confidence shipowners have placed in the Liberian flag.
“This milestone belongs to every member of the Registry’s team. Our people, across every office, in every time zone, in every discipline, show up every single day with a commitment to our clients and to the standards that make this registry what it is,” Castillero said.
He added: “Behind every gross tonne is a vessel, and behind every vessel is a shipowner who chose to trust us. That trust is something we never take for granted, and it is the team that earns it, day after day.”
Nigeria Watch
For Nigeria’s maritime sector, Liberia’s record-setting growth offers more than a curiosity from the world of flag administration — it is a live case study in how an open registry, built on service quality, regulatory responsiveness and global trust, can capture an outsized share of one of shipping’s most strategically important commodities: where vessels are flagged.
Nigeria does not operate as an international open registry in the Liberian or Panamanian mould, and its cabotage regime under the Coastal and Inland Shipping (Cabotage) Act is built around very different objectives — protecting indigenous tonnage and shipowners rather than competing for global flag-of-convenience traffic. Even so, the scale and speed of Liberia’s growth carries indirect relevance for stakeholders across Apapa, Tin Can Island, Onne, Lekki and the wider Nigerian port complex.
A significant share of the foreign-owned vessels calling at Nigerian terminals, including the crude carriers, product tankers and container ships that move Nigerian export and import cargo, are likely to be Liberian-flagged given the Registry’s near 17 percent share of global tonnage and its grip on newbuilding registrations. That means NIMASA’s port state control inspectors, NPA’s terminal operations teams and Nigerian Navy maritime domain awareness units are routinely interacting with the Liberian flag administration’s standards, certification regimes and survey requirements — whether through SOLAS, MARPOL or STCW compliance checks on calling vessels.
The episode also offers a pointed reference point as Nigeria continues its long-running effort to revive its national shipping line and build out indigenous tonnage capacity through mechanisms such as the Cabotage Vessel Financing Fund (CVFF). Liberia’s success illustrates how registry reputation, ease of registration, competitive fee structures and responsive client service can become decisive factors in where shipowners choose to place their vessels — lessons that may inform Nigeria’s own efforts, including NIMASA’s recent ship registry reform partnership with Malta, as the country seeks to make its own flag more attractive to both indigenous and, potentially, foreign-owned tonnage in the years ahead.
For now, Liberia’s 307.3 million GT milestone stands as a benchmark figure against which the ambitions of every other registry — including any future expansion of Nigeria’s own fleet registration regime — will inevitably be measured.
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