Entry into Force of the Bunkers

The International Convention on Civil Liability for Bunker Oil Pollution Damage (Bunkers Convention) will enter into force on 21 November 2008, to cover liability and compensation for pollution damage caused by bunker spills from ships not covered by the Civil Liability Convention (CLC). Under the 1992 protocol the CLC applies to spills from sea-going vessels constructed or adapted to carry oil in bulk as cargo, meaning that it covers oil tankers, including spills of bunker oil, but not oil spills from other types of vessel.

The Bunkers Convention will require the owner of a vessel over 1000 GT registered in a state party to the Convention to maintain compulsory insurance to cover liability for pollution damage (including the costs of preventative measures) caused in the territorial sea of a State Party, as well as in its exclusive economic zone, or equivalent area. Like the CLC, it embodies the principle of strict liability, which obviates the need to prove negligence, and the right of direct action, which would allow a claim for compensation for pollution damage to be brought directly against an insurer.

Ships flagged in States Parties to the Convention will need to have a certificate issued under the Convention. Certificates are issued by States Parties to the Convention against a “Blue Card” issued by the vessel's P and I Club. It is not entirely clear how vessels flagged with a non-party to the Convention will be treated when calling at ports of Parties to the Convention, but if the precedent set by the CLC is followed, then they will be obliged to obtain certification from another state that is party to the Convention.

In order to obtain certification vessels will need to obtain a Blue Card from their P and I Club stating that they have the necessary insurance in place. This Blue Card must be addressed to the Flag State that will be issuing the certificate, and so where vessels are flagged with states that are not party to the Convention, it will be necessary to ascertain in advance which State Party will be issuing the certificate.