The entry into force of the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (2010 HNS Convention) as per 29 November 2027, marks a significant milestone. It marks the finalization of the maritime liability framework for seagoing vessels as it complements the other liability and compensation conventions, i.e. the 1992 Civil Liability Convention and 1992 Fund Convention for oil pollution, the Civil Liability Convention for Bunker Oil Pollution Damage, and the Nairobi Wreck Removal Convention.
The rationale for this compensation framework is the exceptional form of limitation of liability granted by law to the ship-owner, the salvor and a mixed group of other persons involved in the operation of the ship. This limitation of liability is the derogation to the general principle of private law that a party who is liable to compensate the damage of another party, must compensate the damage in full.
The underlying argument is that the ship-owner must be protected against his exposure to extreme liability risks resulting from the operation of the ship, by allowing him to limit his liability to insurable amounts at reasonable costs to be calculated by reference to the tonnage of the ship. The 2010 HNS Convention ensures that those affected by hazardous and noxious cargo incidents involving sea-going vessels are able to reach fair and prompt compensation, while providing legal certainty for industry and governments.
It is not necessary to say that relevant incidents with hazardous and noxious cargo could be quite impactful. The Convention operates under the “polluter pays” principle as the HNS industries are committed to pay compensation through an international system embedded in the Convention. In this way all parties concerned (producing and receiving parties as well as coastal and port States) are able to rely on a system with clear claims criteria. In order to rely on the compensation mechanisms of the 2010 HNS Convention, it is for ports of the utmost importance to verify if their respective national Governments have acceded to the Convention, and if not, urge their Governments to do so by becoming a State Party to the Convention. Further detailed information can be found here.
