About
Scope of application
The HNS Convention applies to any covered damage caused in the territory and territorial sea of a state party. For state parties' exclusive economic zone (EEZ), it also applies to environmental contamination damage.
Furthermore, the HNS Convention also applies to damage (other than damage by contamination of the environment) caused outside any states' territories, if the damage has been caused by a substance carried on board a ship registered in a state party.
Notably, this entails that non-pollution damage (such as damage caused by fire or explosion) is also covered when caused outside the territorial sea of any state by a hazardous or noxious substance on board a ship registered in a state party.
Hazardous and noxious substances covered by the HNS Convention include: oils, liquid substances defined as noxious or dangerous carried in bulk, liquefied gases, liquid substances with a flashpoint not exceeding 60°C, dangerous, hazardous and harmful substances, materials and articles in packaged form, and more, as defined in various international Conventions and the International Maritime Dangerous Goods (IMDG) Code. Losses or damage caused by radioactive materials are excluded.
The HNS Convention does not apply to oil pollution damage from tankers, as this is covered by the CLC.
The following types of damage are covered:
- Loss of life or personal injury on board or outside the ship carrying the substances
- Loss of or damage to property outside the ship
- Economic losses resulting from contamination of the environment (limited to costs of reasonable measures of reinstatement actually undertaken or to be undertaken, unless the loss is loss of profits)
- Costs of preventive measures
Liability of the registered owner
The registered owner of the ship in question is strictly liable to pay compensation following an incident involving the covered substances resulting in the covered damages. The fact that damage has occurred is sufficient to establish the registered owner's liability, provided there is a causal link between the damage and the substance carried on board the ship.
The registered owner may be exempt from liability only if the registered owner proves that the damage resulted from an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional, inevitable and irresistible character, that the damage was wholly caused by an intentional act or omission of a third party, or that the damage was wholly caused by the negligence of a government authority responsible for navigational aids. A notable additional defence allows the owner to be exonerated if the shipper or any other person failed to furnish information concerning the hazardous and noxious nature of the substances shipped, provided that neither the owner nor its servants or agents knew or ought reasonably to have known of the hazardous nature of the substances. In practice, it may be expected that these exceptions for the registered owner's liability may open the possibility for evidentiary challenges and disputes.
The HNS Convention includes a "Himalaya" provision which entails that no claims may be made against the servants or agents of the owner, crew members, pilots, charterers, managers, operators, salvors and so forth. However, if the damage resulted from their personal act or omission committed with intent, or recklessly with knowledge that such damage would probably result, this group of persons are not protected by the provisions of the HNS Convention.
The registered owner is entitled to limit its liability under the HNS Convention:
- Where damage is caused by hazardous and noxious substances in bulk, the registered owner may limit liability to an amount between 10 million and 100 million Special Drawing Rights (SDR) (approximately USD 15 million to USD 150 million), depending on the gross tonnage of the ship.
- Where damage is caused by packaged hazardous and noxious cargo, the maximum liability is 115 million SDR (approximately USD 175 million).
The registered owner will lose the right to limit liability if it is proved that the damage resulted from the personal act or omission of the owner, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.
Compensation system, insurance and time-bar
The HNS Convention establishes a two-tier system for compensation:
- Tier one is covered by compulsory insurance taken out by shipowners, up to the limit of the registered shipowners' liability.
- Tier two provides additional compensation from the HNS Fund, which is made up of continuous contributions from receivers of hazardous and noxious cargo. Contributions are calculated according to the amount of hazardous and noxious substances received in each state party in the preceding calendar year. The aggregate amount of compensation payable by the HNS Fund is 250 million SDR per incident.
The registered owner must have compulsory insurance certificates issued or certified under the authority of a state party to the HNS Convention, in the form set out in Annex I to the HNS Convention. In practice, insurance or financial security will typically be provided by P&I Clubs, who will issue documents akin to Blue Cards confirming coverage to the relevant state authority, which will in turn issue the official certificates, similarly to the process under the CLC and Bunker Convention.
Another key provision is the requirement for direct action, which allows a claim for compensation for damage to be brought directly against an insurer or the person providing financial security for the owner's liability for damage. The defendant may then invoke the limitation of liability for damage even if the registered owner is not entitled to limitation of liability.
Rights to compensation must be exercised within three years from the date when the claimant knew or ought reasonably to have known of the damage and of the identity of the owner (for claims against the owner) or of the damage (for claims against the HNS Fund). In no case may an action be brought later than ten years from the date of the incident which caused the damage.
Who does it impact?
Registered owners of ships registered in state parties carrying hazardous and noxious substances by sea and their P&I insurers who will need to issue certificates evidencing that the compulsory insurance is provided, and who may be defendants in direct lawsuits.
Receivers of bulk hazardous and noxious cargo in state parties, who will be required to make contributions to the HNS Fund based on the quantities of hazardous and noxious substances received.
Status: Not in force
The IMO confirmed on 1 June 2026 that the 2010 HNS Convention will enter into force on 29 November 2027.
Relation to other initiatives and regulations
The HNS Convention is modelled on the CLC and the International Oil Pollution Compensation Fund Conventions and complements the Bunker Convention and the Wreck Removal Convention.
The HNS Convention does not apply to damage already covered by the CLC or the Bunker Convention.
Participants
As of June 2026, the following twelve states have ratified or acceded to the 2010 HNS Convention:
Belgium, Canada, Denmark, Estonia, France, Germany, the Kingdom of the Netherlands, Norway, Slovakia, South Africa, Sweden, and Türkiye.
Thommessen's comments
The most practical implication of the HNS Convention is that many registered owners carrying hazardous and noxious substances by sea will be required to maintain compulsory insurance to cover their liability under the HNS Convention and to carry a certificate to this effect.
The HNS Convention is modelled on the International Convention on Civil Liability for Oil Pollution Damage ('CLC'), and complements the Bunker Convention, but has a much broader scope, covering not only pollution damage, but also the risks of fire and explosion, including loss of life, personal injury and loss of or damage to property. Unlike the Bunker Convention, which defines "Owner" broadly to include the registered owner, bareboat charterer, manager and operator, the HNS Convention channels liability to the registered owner, similar to the CLC.
In light of the growing transport of chemicals and alternative fuels such as ammonia, hydrogen, LPG and LNG, the HNS Convention will become increasingly relevant for shipping companies. Ships trading to countries that are party to the HNS Convention without having the required insurance or certificate will run the risk of being detained by local authorities. It is estimated that some 65,000 ships will require HNS certificates of insurance upon entry into force.
However, the HNS Convention only applies to substances carried on board a ship as cargo. The Bunker Convention only applies to "bunker oil", defined as "any hydrocarbon mineral oil". This entails that a notable gap in the international liability and compensation framework remains for use of new types of fuel that do not fall within the scope of the Bunker Convention.
Shipping companies that receive hazardous and noxious cargo in bulk exceeding certain thresholds will be liable to contribute to the HNS Fund and must comply with annual reporting obligations. Norway was the first state to ratify the 2010 HNS Protocol in April 2017.