The entry into force of the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (2010 HNS Convention) as per 29 November 2027, marks a significant milestone. It marks the finalization of the maritime liability framework for seagoing vessels as it complements the other liability and compensation conventions, i.e. the 1992 Civil Liability Convention and 1992 Fund Convention for oil pollution, the Civil Liability Convention for Bunker Oil Pollution Damage, and the Nairobi Wreck Removal Convention.
The rationale for this compensation framework is the exceptional form of limitation of liability granted by law to the ship-owner, the salvor and a mixed group of other persons involved in the operation of the ship. This limitation of liability is the derogation to the general principle of private law that a party who is liable to compensate the damage of another party, must compensate the damage in full.
The underlying argument is that the ship-owner must be protected against his exposure to extreme liability risks resulting from the operation of the ship, by allowing him to limit his liability to insurable amounts at reasonable costs to be calculated by reference to the tonnage of the ship. The 2010 HNS Convention ensures that those affected by hazardous and noxious cargo incidents involving sea-going vessels are able to reach fair and prompt compensation, while providing legal certainty for industry and governments. (....)