News

Protocol to the HNS Convention

2 August 2010 No.10-009
We refer to our previous circular No.96-006 dated June 1996 titled "HNS Convention"

The 2010 Protocol of the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea 1996 (HNS Convention) was adopted by consensus by a Diplomatic Conference convened by IMO in April 2010 in London. We would advise you of the summary of the protocol as follows;-

1. Shipowner's liability
1) Increase of limits of liability for the damage caused by packaged HNS
Packaged HNS was excluded from the contributing cargo, while the shipowner's liability for packaged HNS was increased by 15% compared with the same for bulk HNS, considering the difficulty in establishing a reporting and levying system on imports of such cargos. Thus the shipowner's liability for bulk / packaged HNS is as follows. (Pleas refer to the attachment.)

Limits of Liability
Bulk HNS
Limits of Liability
Packaged HNS
(i)Ship not exceeding 2,000 GT 10 million SDR 11.5 million SDR
(ii)Ship with GT in excess of 2,000(in addition to the amount mentioned in above(i)) for each GT from 2,001 to 50,000 GT
:1,500 SDR per GT
for each GT in excess of 50,000
:360 SDR per GT
(This aggregate amount shall not in any event exceed 100 million SDR)
for each GT from 2,001 to 50,000 GT
:1,725 SDR per GT
for each GT in excess of 50,000
:414 SDR per GT
(This aggregate amount shall not in any event exceed 115 million SDR)

 


2. Other issues
1) Contribution to LNG account
While the original convention provides that the person liable for LNG contributions is the person who held title to an LNG cargo immediately prior to its discharge (=the titleholder). The 2010 protocol provides that the receiver of cargo is liable for LNG contributions unless there is an agreement between the titleholder and the receiver that the titleholder shall make such contributions.

2) Non-reporting of contribution cargo
The 2010 protocol provides that no compensation for any incident shall be paid by the HNS Fund for damage in the territory etc until the reporting obligations have been complied with in respect of that State Party of such territory (except for the compensation in relation to the damage for personal injury and death)

3. Entry into force
The convention enters into force 18 month after the dateon whichthe following conditions are fulfilled:
(a) ratification by at least 12 states, including 4 States each with not less than 2 million gross ton, and
(b) those States which have received during the preceding calendar year a total quantity of at least 40 million tonnes of cargo contributing to the general account (HNS substances except LNG, LPG and Oil)

Attachment:
-a graph showing the amount of compensation available under HNS / 96LLMC / 92CLC / 92FC/ 92FC
Supplementary Fund
-our circular No.96-006 titled "HNS Convention"