Strait of Hormuz Cooperation and Arbitration Council (SHCAC)

Ensuring Stability. Fostering Collaboration. Resolving Disputes.

The Strait of Hormuz Cooperation and Arbitration Council (SHCAC), an initiative of the Global South Economic Forum (GSEF), provides a pioneering platform dedicated to ensuring stability, fostering collaboration, and resolving disputes in one of the world’s most critical maritime chokepoints. The Strait of Hormuz serves as a vital artery for global energy supplies and international trade, making its peaceful and equitable management essential.

SHCAC offers a neutral and collaborative space where nations and stakeholders from the Global South can address shared challenges collectively. Through constructive dialogue and cooperation, the council aims to maintain maritime security, facilitate effective governance, and promote prosperity by ensuring the smooth and uninterrupted flow of commerce through this strategic waterway.

Our Vision

To establish the Strait of Hormuz as a zone of peace, stability, and prosperity where all nations reliant on this vital waterway benefit equitably from its resources and access, fostering collaborative growth and effective conflict resolution.

Our Mission

To provide an inclusive platform for cooperation, advocacy, and arbitration focused on addressing disputes, enhancing maritime security, and promoting shared economic prosperity in the Strait of Hormuz. SHCAC is committed to creating a balanced governance framework that supports the diverse interests of all stakeholders while prioritizing regional stability, trade facilitation, and environmental sustainability.

Key Objectives

Collaboration for Stability

  • Foster cooperation among bordering nations and key users to ensure uninterrupted trade and energy transit through the Strait of Hormuz.

  • Promote mutual trust and shared responsibility through regular dialogues and joint initiatives.

Dispute Resolution and Arbitration

  • Establish a neutral arbitration council to resolve territorial, trade, and maritime disputes fairly and transparently.

  • Align dispute resolution with international law and maritime regulations.

Enhancing Maritime Security

  • Develop coordinated strategies to combat piracy, smuggling, and other maritime threats in the region.

  • Support capacity building for regional maritime authorities to improve security and monitoring capabilities.

Promoting Economic Equity

  • Advocate for equitable access to the Strait for all Global South nations dependent on its trade routes.

  • Facilitate infrastructure development projects that support sustainable economic growth.

Sustainability and Environmental Stewardship

  • Promote environmentally responsible practices in shipping and trade across the waterway.

  • Launch initiatives to protect marine ecosystems and ensure long-term ecological balance.

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Why SHCAC Matters

The Strait of Hormuz is a vital maritime chokepoint, with roughly 20 million barrels of crude oil passing through daily, accounting for about 20% of global petroleum liquids consumption and over one-fifth of global liquefied natural gas (LNG) trade. Its strategic importance makes it critical to the stability of global energy markets and international trade.

However, geopolitical tensions, territorial disputes, and security threats in the region pose significant risks to the free flow of commerce. These challenges can cause disruptions that spike global oil prices and threaten economic stability worldwide. The Strait’s narrow navigable channels, coupled with its role as the sole maritime route connecting the Persian Gulf to open oceans, exacerbate its vulnerability.

SHCAC addresses these risks by providing a neutral platform that fosters cooperation, dialogue, and dispute resolution among the bordering and user nations, particularly within the Global South. By promoting stability, security, and equitable governance, SHCAC ensures the Strait continues to function as a reliable and secure gateway for global commerce, thereby safeguarding the economic interests of all nations dependent on this critical waterway.

How SHCAC Operates

Cooperation and Advocacy
SHCAC actively engages bordering states, key shipping nations, and energy producers to establish common ground on critical issues impacting the Strait of Hormuz. It advocates for international maritime policies that prioritize stability and equitable access to this vital waterway, fostering mutual trust and shared responsibility through continuous dialogue and joint initiatives.

Arbitration and Dispute Resolution
The council provides a neutral, inclusive platform for arbitration aimed at resolving territorial, trade, and geopolitical disputes. All arbitration processes adhere strictly to international maritime law and standards, ensuring fairness, transparency, and respect for established legal frameworks.

Security Frameworks
SHCAC coordinates joint security patrols and operates integrated information-sharing systems to mitigate risks such as piracy, smuggling, and other maritime threats. It collaborates with international organizations and regional maritime authorities to enhance monitoring capabilities, promote rapid response, and maintain safe navigation.

Sustainability Initiatives
Committed to environmental stewardship, SHCAC supports projects reducing the ecological footprint of maritime activities in the region. It promotes cleaner shipping technologies, advocates environmentally responsible operational practices, and launches initiatives to protect marine biodiversity and maintain long-term ecological balance.

Membership and Participation

Eligible Members:

  • Governments of bordering states and nations that utilize the Strait of Hormuz for trade and energy transport.

  • Regional and international trade organizations with interests in the Maritime Silk Road and global energy security.

  • Private sector stakeholders, including shipping companies, energy producers, and logistics providers.

  • Environmental and civil society groups dedicated to sustainable maritime practices and marine ecosystem protection.

Member Benefits:

  • Access to a neutral platform for addressing disputes and fostering collaborative solutions based on international law and equitable governance.

  • Opportunities to engage in regional security and sustainability initiatives aimed at safeguarding seamless maritime operations.

  • Representation in shaping policies and projects that promote stability, equitable access, and sustainable economic growth along this crucial maritime corridor.

The Future of the Strait of Hormuz

Through the Strait of Hormuz Cooperation and Arbitration Council (SHCAC), the Global South Economic Forum is shaping a future where the Strait of Hormuz becomes a beacon of cooperation, stability, and shared prosperity. Recognizing the Strait’s vital role as a maritime chokepoint for around 20% of the world’s crude oil and a substantial portion of liquefied natural gas trade, SHCAC fosters dialogue among bordering states, shipping nations, and energy producers to mitigate geopolitical tensions and security threats.

By creating a framework that emphasizes trust, dispute resolution, and equitable governance, SHCAC ensures this crucial waterway continues to facilitate smooth global commerce and energy transportation. The council’s commitment to collaborative security measures, sustainable environmental management, and inclusive economic growth positions the Strait of Hormuz as a resilient and reliable global trade artery.

SHCAC’s approach addresses the inherent volatility of the region, balancing national interests with international law and cooperative strategies. This vision enhances long-term political stability, optimizes maritime safety, and supports sustainable economic development, reinforcing the Strait of Hormuz’s indispensable function in global connectivity and energy security.

Join SHCAC in building a secure, collaborative, and sustainable future for the Strait of Hormuz.

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The Global South Economic Forum (GSEF) is a transformative platform fostering collaboration among nations including Australia, China, India, Brazil, Russia, South Africa, Saudi Arabia, Türkiye, and the UAE. It tackles shared challenges while unlocking the immense potential of emerging economies. With a focus on energy, technology, agriculture, finance, and cultural exchange, GSEF promotes inclusivity, ethical leadership, and sustainable development. By advancing innovation and building meaningful partnerships, GSEF accelerates economic transformation and elevates Australia’s strategic role. GSEF turns collective ambition into concrete outcomes strengthening resilience, driving prosperity, and shaping a more equitable global future.

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