Norway has become the first country to ratify a compensation treaty covering the transport of hazardous and noxious substances (HNS) by ship.
The International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (2010 HNS Convention) was ratified by Norway at International Maritime Organisation (IMO) Headquarters in London on April 21.
Norway also provided data on the total quantities of contributing cargo liable for contributions received in Norway during the preceding calendar year.
Kitack Lim, IMO Secretary General, welcomed the ratification by Norway and encouraged other states to follow suit.
“The number of ships carrying HNS cargoes is growing steadily with more than 200 million tonnes of chemicals traded annually by tankers and we have to recognize that accidents can and do happen. I urge all states to follow the example set by Norway and consider acceding to the HNS 2010 treaty as soon as possible, in order to bring it into force,” Kitack Lim said.
The convention, when in force, will provide a regime of liability and compensation for damage caused by HNS cargoes transported by sea, complementing existing regimes for the transport of oil as cargo, bunker oil used for the operation and propulsion of ships, the removal of hazardous wrecks and claims for death of or personal injury to passengers, or for damage to their luggage, on ships.
Entry into force of the treaty requires accession by at least twelve states, meeting certain criteria in relation to tonnage and reporting annually the quantity of HNS cargo received in a state.
Total compensation available under the convention is capped at 250 million Special Drawing Rights (SDR) of the International Monetary Fund (approximately USD 340 million at current exchange rates) per event.
The HNS Convention establishes the principle that the “polluter pays” by ensuring that the shipping and HNS industries provide compensation for those who have suffered loss or damage resulting from an HNS incident.
The HNS Fund pays compensation once shipowner’s liability is exhausted and is financed through contributions paid post incident by receivers of HNS cargoes. The fund is administered by states and contributions will be based on the actual need for compensation.
HNS covered by the convention include: oils, other liquid substances defined as noxious or dangerous, liquefied gases, liquid substances with a flashpoint not exceeding 60˚C, dangerous, hazardous and harmful materials and substances carried in packaged form or in containers, and solid bulk materials defined as possessing chemical hazards.
IMO measures relating to the prevention of accidents that involve HNS cargoes are already in force, including ship design, operations and safety on board as well as safety of loading and unloading operations. In addition, there is a protocol covering preparedness and response to shipping accidents involving hazardous substances.
