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HNS Convention Sneaking Up On Ports
01 May 2004
London law firm Lawrence Graham says shipping is focusing on complying with ISPS requirements while another soon to be enforced Convention, which will have major ramifications for all aspects of shipping, goes largely unnoticed. Writing in the latest issue of Shipping Lawgram , the firm's shipping partner Imogen Rumbold says the Hazardous and Noxious Substances Convention 1996 is likely to come into force in the next two years.
Under the HNS Convention, ports and terminals will face new liabilities, charterers and receivers will pay more, shipowners will need new insurance and documentation, P&I Clubs must set up new guarantees, authorities around the world will have more requirements to police, and in any accident to almost any ship claimants for environmental damage will have new legal remedies to pursue. And yet, awareness of the Convention is low and there has been little preparation in most areas of shipping.
HNS 1996 will provide a compensation regime for damage arising from an incident involving Hazardous and Noxious Substances during their carriage by sea. The Convention covers not only pollution and property damage but also death and injury for incidents involving chemicals, LNG, LPG and oil (where the IOPC Fund/CLC do not apply).
The wide and multi-sourced definition of HNS means that almost every ship afloat will be affected in some way by the Convention. The second result of the wide definition is that deciding who will pay to the HNS Fund, and how much, is very complex. Ultimately, many thousands of importers, receivers and terminals world-wide will be affected, as will most shipowners and all P&I Clubs.
MJ Information No: 19425
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