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28. May 2018

News

Compensation for Hazardous and Noxious Cargoes a step closer

Denmark has presented its plan to ratify the 2010 International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea. The Convention establishes a comprehensive regime to provide compensation for costs, including clean-up and restoring the environment in the event of an incident involving HNS cargoes.

"The Danish ratification of the HNS Convention is important to shipping as the carriage of HNS by sea is growing by almost all ship types including container ships, chemical, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) tankers. Thus, we look forward to the entry into force of the convention,” says Christian Gorrissen, Vice President and Head of Legal atTorm.

Access to a comprehensive and global liability and compensation regime, similar to that available to those affected by oil spills will be granted with the entry into force of the convention. Costs will be shared between shipowners and HNS cargo receivers.

“I am happy to see the up-coming Danish ratification of the last member of the IMO family of maritime law conventions – the 2010 HNS Convention. The entry into force of the convention will ensure that those who have suffered damage have access to an international liability and compensation regime. I hope it will encourage other States to ratify the convention so it can enter into force as soon as possible,” says Henriette Ingvardsen, Head of Legal Affairs at Danish Shipping.

Up to date several states have signed the convention but only Norway, Canada and Turkey have ratified it. 2010 The HNS Convention will enter into force 18 months after it has been acceded by twelve countries, meeting certain criteria in relation to tonnage and reporting annually the quantity of HNS cargo received in a State. The treaty requires a total quantity of at least 40 million tonnes of cargo, which are liable to the HNS Fund.

Until the HNS Convention enters into force, an existing EU Directive on Environmental Liability for Preventing and Remedying Environmental Damage will apply to HNS incidents in the waters of EU Member States, without the benefits of the international regime.