Entry into force of an international convention designed to cover harm caused by incidents involving hazardous or noxious substances at sea has come closer, following ratification by four European states this month.
The HNS Convention (International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea) is designed to ensure prompt and adequate compensation for those affected by an incident, whether through pollution, fire or explosion. The substances include:
- oils, other than those already covered by existing schemes, and including biofuels and other novel fuels;
- liquid chemicals, carried in bulk, in tanks or in packaged form;
- liquefied gases, including LNG, LPG, ethane and other chemicals; and
- solid chemicals and other solid bulk materials that present chemical hazards.
The HNS Convention was adopted by the International Maritime Organization (IMO) in 1996, but needed at least 12 states to ratify the 2010 Protocol. Belgium, Germany, the Netherlands and Sweden ratified the 2010 Protocol in mid-April, bringing the total number of contracting states to 12.
Once in force (in late 2027 or early 2028, depending on the collection of contributing cargo data), the HNS Convention will require ships carrying in-scope cargo to maintain certificates of insurance or other financial security in line with liability limits established under the convention.
In addition, receivers of cargo will contribute to the HNS Fund, which will act as a reserve in cases when the cost of damages exceeds the shipowner’s liability. These contributions will be paid post-incident.
The HNS Convention is modelled on the International Convention on Civil Liability for Oil Pollution Damage (CLC), adopted in 1969 after several serious incidents involving oil tankers; this was supplemented by the 1992 Protocol, which established the International Oil Pollution Compensation Funds (IOPC Funds).
IMO also has a separate convention addressing damage caused by pollution from bunker fuels.
Existing contracting states to the HNS Convention are Canada, Denmark, Estonia, France, Norway, Slovakia, South Africa and Turkey.