A long-awaited international compensation regime for accidents involving hazardous and noxious substances carried by sea is set to enter into force on November 29, 2027.
“This treaty will ensure that those affected by hazardous cargo incidents involving ships can access fair and timely compensation, while providing legal certainty for industry and governments,” said IMO secretary-general Arsenio Dominguez, adding that the HNS Protocol closes an important gap in the international liability and compensation regime for shipping.
The 2010 HNS Convention is the last piece in the puzzle needed to ensure that those who have suffered damage have access to a comprehensive and international liability and compensation regime.
The International Maritime Organization (IMO) said the 2010 HNS Convention marks a milestone for shipping’s global liability and compensation regime as increasing volumes of chemicals and alternative fuels are transported by sea.
The conditions for the treaty’s entry into force were met on May 29, 2026, paving the way for the 2010 HNS Convention (the 1996 Convention as amended by the 2010 Protocol) to enter into force 18 months later, on November 29, 2027.
The 12 contracting states to the HNS Convention, as of 29 May 2026, are: Belgium, Canada, Denmark, Estonia, France, Germany, the Kingdom of the Netherlands, Norway, Slovakia, South Africa, Sweden and Türkiye.
The Convention covers loss of life, personal injury, property damage, economic loss, clean-up costs and environmental damage arising from incidents involving more than 2,000 hazardous substances carried by sea, including chemicals, oils, acids, fertilizers, alcohols, LNG and LPG.
Under the regime, shipowners are subject to strict liability for damage and are required to maintain State-certified insurance or other financial security. Furthermore, additional compensation is available through the HNS Fund, financed by contributions from receivers of HNS cargo in contracting states.
It is estimated that approximately 65,000 ships will require HNS certificates of insurance or other financial security.
Total compensation available under the Convention is capped at 250 million special drawing rights (SDR) of the International Monetary Fund (approximately US$360m at current exchange rates) per incident.
Shipowners are held strictly liable up to the maximum limit established under the Convention for the costs arising from an HNS incident.
