IMO Pushes "Polluter Pays" Convention

The IMO, together with the International Oil Pollution Compensation Funds (IOPC Funds) and the International Tanker Owners Pollution Federation (ITOPF), is urging member states to ratify and implement a key 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) 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.


Total compensation available under the Convention is capped at 250 million Special Drawing Rights (SDR) of the International Monetary Fund per event.


Registered owners of ships carrying HNS cargoes, have to maintain insurance that is state certified. The HNS Fund pays compensation once shipowner’s liability is exhausted and is financed through contributions paid post incident by receivers of HNS cargoes.


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.

(The Maritime Executive)