IMO hazardous cargo compensation regime nears entry into force

The IMO said on 14 April that four states – Belgium, Germany, the Netherlands and Sweden – have deposited their instruments of ratification for the International Convention on Liability and Compensation for Damage in connection with the carriage of Hazardous and Noxious Substances by Sea, 2010 (2010 HNS Convention), bringing the treaty a step closer to entry into force.

The convention is designed to ensure adequate, prompt and effective compensation for those affected by incidents involving HNS carried by seagoing ships. 

The IMO noted that this is increasingly relevant given the growing volumes of chemicals and alternative fuels transported in bulk by sea.

With the latest ratifications, the requirement for at least 12 states to consent to be bound by the treaty has now been met.

The IMO said the 2010 HNS Protocol will enter into force 18 months after contracting states report, during the preceding calendar year, a total of at least 40M tonnes of cargo contributing to the HNS general account.

Belgium, Germany, the Netherlands and Sweden reported nearly 28M tonnes of HNS contributing cargo in 2025.

“This means that the HNS contributing cargo data reported by the existing eight contracting states in 2025 – following more than 22M tonnes recorded in 2024 – will be assessed after 31 May 2026 to confirm the entry-into-force date, which could be as early as 30 November 2027,” the IMO said.

“Polluter pays” principle

The IMO said the 2010 HNS Convention establishes the “polluter pays” principle, ensuring that the shipping and HNS industries provide compensation to those who suffer loss or damage as a result of HNS incidents.

An HNS Fund will be established to provide compensation once the shipowner’s liability is exhausted. The fund will be financed through post-incident contributions from receivers of HNS cargoes, the IMO said.

Substances covered by the convention include oils; other liquid substances classified as noxious or dangerous; liquefied gases; liquids with a flashpoint not exceeding 60°C; hazardous materials carried in packaged form or containers; and solid bulk materials with chemical hazards.

The IMO estimates that around 65,000 ships will be required to carry HNS certificates of insurance or other financial security.