Maritime Legal Update
– July2026
IMO: HNS Convention to
enter into force on 29 November 2027 – new global liability regime for
hazardous substances
(prepared by Marek Czernis & Co. Law
Office)
Firm note – HNS,
maritime liability and carriage of hazardous substances
The Law Office actively advises shipowners,
operators, terminals, chemical carriers, offshore stakeholders, insurers and
financing institutions regarding: environmental liability, carriage of
hazardous and noxious substances, IMO civil liability conventions, marine
insurance and P&I, cargo claims, pollution response and contractual risk
allocation in shipping and offshore projects.
The entry into force of the HNS Convention
represents one of the most important recent developments in international
maritime liability law.
1. Introduction – 2010
HNS Convention
The International Convention on Liability and
Compensation for Damage in Connection with the Carriage of Hazardous and
Noxious Substances by Sea known as the 2010 HNS Convention will enter into
force on 29 November 2027.
This marks a major milestone for shipping’s
global liability and compensation regime, particularly as increasing volumes of
hazardous cargoes are transported by sea, including: chemicals, alternative
fuels, LNG, LPG, fertilizers, acids, alcohols, oils and other hazardous and
noxious substances.
2. Entry-into-force
conditions fulfilled
The conditions for the treaty’s entry into
force were met on 29 May 2026.
This means that the 2010 HNS Convention, namely
the 1996 Convention as amended by the 2010 Protocol, will enter into force 18
months later.
Under Article 21(1) of the 2010 HNS Protocol,
the Convention enters into force 18 months after two requirements have been
satisfied: at least 12 States must express their consent to be bound, including
four States each with not less than 2 million units of gross tonnage; the IMO
Secretary-General must receive information confirming that contributing cargo
in those States amounted to at least 40 million tonnes in the preceding
calendar year.
These conditions were satisfied in 2026.
3. Contracting States
As of 29 May 2026, there were 12 contracting
States to the 2010 HNS Protocol: Belgium, Canada, Denmark, Estonia, France, Germany,
the Kingdom of the Netherlands, Norway, Slovakia, South Africa, Sweden, Turkey.
In April 2026, ratifications were made by: Belgium,
Germany, the Kingdom of the Netherlands, Sweden.
Nine of the contracting States have more than 2
million units of gross tonnage.
Reports on contributing cargo also confirmed
that the required threshold of 40 million tonnes of contributing cargo was
exceeded for the 2025 reporting year.
4. Gap in the existing
liability regime
IMO Secretary-General Arsenio Dominguez
described the fulfilment of the entry-into-force conditions as a long-awaited
milestone closing an important gap in the international liability and
compensation regime for shipping.
Existing IMO regimes already addressed, in
particular: oil pollution liability, wreck-related liability and selected other
maritime liability areas.
However, there was no comprehensive global
regime dealing with damage caused by other hazardous and noxious substances
carried by sea.
The 2010 HNS Convention is intended to fill
that gap.
5. Scope of damage
covered
The HNS Convention applies to damage arising
from incidents involving more than 2,000 hazardous and noxious substances
carried by sea.
The Convention covers, among other things: loss
of life, personal injury, property damage, economic loss, clean-up costs, environmental
damage and response costs.
It applies to substances including: chemicals, oils,
acids, fertilizers, alcohols, LNG, LPG and other substances classified as
hazardous and noxious substances.
6. Shipowner liability
The Convention is based on strict liability
meaning that shipowners are liable irrespective of fault, up to the limits
established under the Convention.
Shipowners will be required to maintain
State-certified insurance or other financial security.
It is estimated that approximately 65,000 ships
will require HNS certificates of insurance or other financial security.
7. HNS Fund
Once the shipowner’s liability is exhausted,
additional compensation will be available through the HNS Fund.
The Fund will be financed by contributions from
receivers of HNS cargo in contracting States.
This mechanism reflects the polluter pays
principle by ensuring that the shipping and HNS industries provide compensation
to those suffering loss or damage resulting from an HNS incident.
Contributions will generally be paid
post-incident and will be based on the actual compensation required.
8. Compensation limit
Total compensation available under the HNS
Convention will be capped at 250 million SDR equivalent to approximately USD 360 million at current exchange
rates.
The limit applies per incident.
In practice, this creates a two-tier
compensation system: first tier – shipowner liability and compulsory insurance,
second tier – HNS Fund financed by receivers of HNS cargo.
9. Practical
significance for the market
The entry into force of the HNS Convention will
be highly relevant for: shipowners, vessel operators, chemical terminals, ports,
HNS cargo receivers, P&I insurers, ship finance banks, offshore and energy
stakeholders.
In practical terms, increasing emphasis should
be expected on: HNS cargo reporting, HNS insurance certificates, hazardous
cargo due diligence, contractual risk allocation, pollution response procedures
and compliance relating to carriage of hazardous substances.
10. Law Office
conclusions
The entry into force of the 2010 HNS Convention
represents a historic step in the development of international maritime law.
For the first time, a comprehensive global
liability and compensation system will apply to damage arising from the
carriage by sea of hazardous and noxious substances other than traditional oil
pollution.
For shipping practice, this means: greater
legal certainty for victims, shipowners and insurers, mandatory financial
security, establishment of the HNS Fund and the need to adapt contractual
documentation and operational procedures to the new liability regime.
The Law Office continues to support clients
regarding: HNS compliance, marine insurance, pollution claims, carriage of
hazardous substances, cargo liability and risk allocation in maritime and
offshore contracts.
Final note – our
publications
Further insights regarding maritime law, civil
liability, HNS, marine insurance and offshore matters are available at:
https://www.linkedin.com/company/czernis