The shipping industry has just under 18 months to prepare for a new international liability regime covering hazardous cargo transported by sea.
The International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (2010 HNS Convention) will enter into force on November 29, 2027, after the conditions required for its implementation were met on May 29, according to the International Maritime Organization (IMO). The convention will apply to incidents involving more than 2 000 hazardous and noxious substances, including chemicals, LNG, LPG, fertilisers and industrial acids.
"The fulfilment of the conditions for the entry into force of the HNS Protocol is a long-awaited milestone that closes an important gap in the international liability and compensation regime for shipping," said IMO Secretary-General Arsenio Dominguez.
"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."
The 2010 HNS Convention complements existing IMO liability and compensation regimes addressing oil pollution and hazardous shipwrecks, extending similar protection to damage involving other hazardous and noxious substances.
The convention covers loss of life, personal injury, property damage, economic loss, clean-up costs and environmental damage arising from incidents involving hazardous and noxious substances carried by sea.
How it will work
The convention applies the 'polluter pays' principle by ensuring that the shipping and hazardous and noxious substances (HNS) industries provide compensation for those who suffer loss or damage resulting from an HNS incident.
Shipowners will be held strictly liable, up to the maximum limit established under the convention, for costs arising from an HNS incident and will be required to maintain state-certified insurance or other financial security.
If damages exceed the shipowner's liability limit, additional compensation will be available through an HNS fund, financed through contributions paid post-incident by 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. The HNS fund will be administered by states, with contributions based on the actual compensation required.
Entry into force
There are currently 12 contracting states to the 2010 HNS Protocol, including South Africa, following ratifications by Belgium, Germany, the Kingdom of the Netherlands and Sweden in April 2026. The other contracting states are Canada, Denmark, Estonia, France, Norway, Slovakia and Türkiye.
Nine of the contracting states represent more than two million units of gross tonnage. Reports on contributing cargo submitted in accordance with Article 20 of the protocol confirmed that the required aggregate quantity of contributing cargo – more than 40 million tonnes – was achieved for the 2025 reporting year.
