Panama vs Hormuz: Where is Toll Charged? | Current Affairs | Drishti IAS

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In this video, we explain which major international waterways charge toll and why this topic is important for UPSC aspirants.
This video covers key global maritime routes like the Panama Canal and Suez Canal, where toll is charged for passage, and contrasts them with natural straits like the Strait of Hormuz, where international law restricts toll collection. We also discuss the legal framework governing these waterways, including the concept of transit passage under international maritime law.
Further, the video highlights the key differences between man-made canals and natural waterways, helping you understand why toll is applicable in some cases and not in others. We also analyze the current controversy surrounding strategic waterways, making this topic highly relevant for geopolitics, economy, and international relations.
The explanation is simple yet analytical, useful for both UPSC aspirants and general viewers. A practice question is included at the end to test your understanding for Prelims 2026. This topic is highly relevant for GS Paper 2 (IR) and GS Paper 3 (Economy). For more UPSC-related content and in-depth current affairs discussions, hit the notification bell and share this video with fellow aspirants.

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