HNS Convention

The International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea was adopted at the IMO in 1996, with entry into force set at 18 months after 12 states, including four with at least 2 million gross tonnage, have ratified.  There is the additional proviso that those states that have ratified must also have received between them at least 40 million tones of hazardous and noxious substances during the course of the previous year.  This means that states who intend to ratify have to establish who the receivers of such cargoes are in order to be able to make their report the Secretary General of the IMO.   

“Hazardous and Noxious Substances” are defined in the Convention by reference to cargoes listed in a number of IMO Conventions.  The scope is wide, including, dry bulk chemicals, oils listed in Appendix I of MARPOL Annex I, liquefied gases, liquid substances with a flashpoint not exceeding 60ºC, bulk liquid chemicals listed in Chapter 17 of the IBC Code and noxious liquid substances in Appendix II of MARPOL Annex II.  Appendix II of Annex II means all cargoes categorised as A, B, C or D. 

In simple terms the Convention provides for a ship owner to be “strictly liable” for damage caused by hazardous and noxious substances carried on board his ship, up to a figure to be defined according to the size of the vessel.  The maximum liability for the owner would be 100 million SDR’s (Special Drawing Rights – the unit of currency utilised by the International Monetary Fund)  The ship owner’s liability is to be covered by compulsory insurance and vessels will have to carry  a Certificate issued by the Administration attesting that insurance or other financial security is in force.  In the event of an incident involving HNS where the claims exceed the shipowner’s liability, a second tier of liability would be triggered, with receivers in states that are party to the Convention being obliged to contribute to a fund to cover the excess, up to a maximum of 250 million SDR’s. 

“Damage” in terms of the HNS Convention covers pollution, loss of life or personal injury and loss of or damage to property caused by the substances carried.  It also covers the cost of preventive measures and further loss or damage caused by those measures.  It does not cover pollution caused by persistent oil, as this is covered by the CLC Fund, but would cover other damage, personal injury etc. in the event of an incident involving such substances.