2010 HNS Convention – Entry into Force on 29 November 2027
International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea – 2010 HNS Protocol.
Entry into Force: 29 November 2027.
Issuing Authority: International Maritime Organization (IMO).
The international maritime liability and compensation framework is approaching a major milestone. The 2010 Protocol to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS Convention) will enter into force on 29 November 2027.
The entry into force follows the fulfilment of the treaty's ratification and contributing-cargo reporting requirements on 29 May 2026. The Convention establishes an international two-tier liability and compensation regime for incidents involving hazardous and noxious substances (HNS) carried by sea.
The new regime introduces strict shipowner liability, compulsory insurance or other financial security, State-issued insurance certificates and supplementary compensation through the international HNS Fund.
Background and Purpose of the HNS Convention
The original HNS Convention was adopted in 1996, following the development of international liability and compensation arrangements for pollution damage caused by oil spills from tankers.
The 2010 HNS Protocol was subsequently adopted to address practical issues that had prevented the original Convention from entering into force. Once implemented, the 1996 Convention, as amended by the 2010 Protocol, will be known as the 2010 HNS Convention.
The Convention is intended to establish a consistent international framework for compensation arising from maritime incidents involving hazardous and noxious substances, extending protection beyond the traditional oil pollution liability regimes.
Strict Shipowner Liability
Establishes liability for the registered shipowner for qualifying damage caused by HNS, subject to the exceptions and limitations provided by the Convention.
Compulsory Financial Security
Requires applicable ships to maintain insurance or other financial security covering the shipowner's liability under the Convention.
International Compensation Fund
Establishes a supplementary compensation mechanism financed through contributions from receivers of qualifying HNS cargo in Contracting States.
Legal and Financial Certainty
Provides a common international framework for liability, compensation, insurance and the assessment of claims following HNS incidents.
Relationship with Existing Maritime Liability Regimes
The HNS Convention complements the existing international liability and compensation framework, including the Civil Liability Convention (CLC), the International Oil Pollution Compensation Funds regime and the Bunker Convention.
It addresses damage arising from hazardous and noxious substances while avoiding overlap with pollution damage already covered by the applicable oil pollution conventions and the Bunkers Convention.
Scope of Application – Hazardous and Noxious Substances
The Convention covers a wide range of hazardous and noxious substances carried by sea, in both bulk and packaged form. The substances are identified by reference to lists and criteria contained in various international maritime conventions and IMO codes.
The scope includes more than 2,000 substances and covers different cargo categories with chemical, toxic, flammable, explosive or other hazardous properties.
Bulk Liquid Cargoes
Includes qualifying chemical substances, oils, persistent and non-persistent oils, other liquid substances defined as noxious or dangerous, and liquids with applicable hazardous properties.
Liquefied Gases
Includes liquefied natural gas (LNG), liquefied petroleum gas (LPG) and other liquefied gases falling within the Convention's substance definitions.
Solid Bulk Cargoes
Includes solid bulk materials defined as possessing chemical hazards under the applicable international classification criteria.
Packaged Dangerous Goods
Includes qualifying dangerous, hazardous and harmful materials carried in packaged form, containers and other applicable cargo transport units.
Applicable International Codes and Classification
The identification of HNS substances is linked to the relevant international conventions and codes, including:
- International Maritime Dangerous Goods (IMDG) Code.
- International Maritime Solid Bulk Cargoes (IMSBC) Code.
- International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk (IBC Code).
- International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code).
- International Convention for the Prevention of Pollution from Ships (MARPOL).
Not every cargo classified under these codes automatically qualifies as HNS under the Convention. The applicable substance definitions and classification criteria must be checked. Certain low-hazard substances, including coal and iron, are generally excluded.
Residues remaining from the previous carriage of HNS are also addressed by the Convention, subject to its applicable provisions and exclusions.
Types of Damage Covered by the Convention
The HNS Convention extends beyond conventional marine pollution compensation. It addresses damage arising from incidents involving HNS, including the consequences of fire and explosion.
Loss of Life and Personal Injury
Compensation may be available for loss of life and personal injury suffered by persons on board the ship carrying HNS or outside the ship, subject to the Convention's geographical and other applicability provisions.
Property Damage
Covers qualifying loss of or damage to property outside the ship carrying the hazardous or noxious substances.
Environmental Pollution and Remediation
Includes pollution damage and reasonable measures undertaken to prevent, minimize or remedy environmental contamination within the applicable scope of the Convention.
Economic Loss
May include economic losses resulting from environmental contamination, such as losses suffered by fishing, mariculture and tourism activities.
Preventive Measures
Includes the costs of reasonable preventive measures, such as emergency response and clean-up operations at sea and onshore, together with further damage caused by such measures.
Fire and Explosion Consequences
The regime also addresses damage resulting from fire and explosion incidents involving HNS, including associated personal injury, property damage and other qualifying losses.
Geographical Application
The Convention does not apply without geographical limitations to every incident occurring anywhere in the world. Its application depends on the location of the damage, the relevant State Party's jurisdiction and the specific provisions of the Convention.
It covers qualifying damage in the territory and territorial sea of a State Party, pollution damage in its exclusive economic zone or equivalent area, and certain non-pollution damage involving HNS carried on board ships registered in a State Party outside the territorial sea of any State.
The Two-Tier Liability and Compensation Framework
The Convention establishes a two-tier compensation structure designed to ensure financial protection following incidents involving HNS cargoes.
The first tier is based on the registered shipowner's strict liability, supported by compulsory insurance or other financial security. The second tier is provided by the international HNS Fund when the shipowner's liability and available insurance are insufficient or other conditions for Fund intervention are met.
Tier 1 – Shipowner Liability
The registered shipowner is subject to strict liability for qualifying damage caused by HNS carried on board the ship, subject to the Convention's provisions.
The applicable liability limit depends on the ship's gross tonnage and whether the damage involves bulk HNS or packaged HNS.
The shipowner must maintain the required insurance or other financial security.
Tier 2 – International HNS Fund
The HNS Fund provides supplementary compensation where the shipowner's liability is exhausted, the owner is financially incapable of meeting the relevant obligations, or other circumstances specified by the Convention apply.
The Fund is financed through contributions from receivers of contributing HNS cargo in Contracting States.
Total compensation under the Convention is subject to the overall maximum limit of 250 million SDR per incident.
Maximum Shipowner Liability Limits
The maximum first-tier shipowner liability depends on the form in which the HNS cargo is carried.
- Bulk HNS: Shipowner liability is limited according to gross tonnage, up to a maximum of 100 million Special Drawing Rights (SDR).
- Packaged HNS: The maximum shipowner liability is 115 million SDR.
- Combined Bulk and Packaged HNS: Where damage is caused by both categories, the applicable maximum shipowner liability is 115 million SDR.
These are maximum limits, not automatic fixed liability amounts. The applicable limit for a particular vessel and incident must be determined in accordance with the Convention.
The International HNS Fund – Compensation up to 250 Million SDR
The HNS Fund represents the second tier of the international compensation framework. It is intended to provide additional financial protection where the shipowner's first-tier liability does not provide sufficient compensation for qualifying claims.
Maximum Compensation
The total compensation available under the Convention is capped at 250 million SDR per incident, including the compensation paid under the shipowner's first-tier liability.
Fund Financing
The Fund is financed through contributions from persons receiving contributing HNS cargo in Contracting States, according to the applicable reporting and contribution provisions.
Separate Cargo Accounts
The Fund structure provides for a general account and separate accounts for oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG).
Administration
The HNS Fund will be administered through an Assembly representing the States Parties and a dedicated Secretariat.
Important Distinction – The 250 Million SDR Overall Ceiling
The 250 million SDR limit represents the total maximum compensation available under the Convention for one incident. It is not an additional 250 million SDR payable on top of the shipowner's first-tier liability.
The Fund provides the supplementary compensation within this overall ceiling, subject to the applicable claims and compensation provisions.
The approximate monetary equivalent published by the IMO is USD 360 million, although the actual conversion value of SDRs varies with exchange rates.
Compulsory Insurance and HNS State Certificates
One of the most significant operational consequences of the Convention is the requirement for applicable ships to maintain insurance or other financial security covering their potential HNS liabilities.
The registered shipowner must ensure that the required financial security is in place and that the vessel carries the appropriate certificate issued or certified by the competent authority of the relevant State.
Shipowner Insurance Obligations
Registered owners of ships within the Convention's certification requirements must maintain insurance or other financial security corresponding to the applicable shipowner liability limits.
State-Issued Certificate
The competent authority of the relevant State is responsible for issuing or certifying the evidence of insurance or financial security in accordance with the Convention.
Carriage of Certificates on Board
The appropriate HNS certificate must be maintained on board as required by the Convention, providing documentary evidence of the applicable financial security.
P&I Insurance Arrangements
Shipowners should engage with their Protection and Indemnity (P&I) insurers to establish the applicable insurance arrangements, coverage requirements and supporting documentation.
Flag Administration Coordination
Owners and technical managers should coordinate with their flag administrations concerning certificate applications, financial security evidence and implementation procedures.
Industry-Wide Certification Implications
The certification implications are not confined to conventional chemical tankers and gas carriers. Other vessel types may also be affected when transporting substances falling within the Convention's scope.
The IMO estimates that approximately 65,000 ships will require HNS certificates of insurance or other financial security.
This creates a substantial implementation task for shipowners, insurers, flag administrations and technical managers ahead of November 2027.
HNS Cargo Reporting and Contribution Obligations
The Convention introduces reporting obligations for States and persons receiving contributing HNS cargo. The purpose is to establish an accurate record of the quantities of relevant substances received within Contracting States and to provide the basis for the HNS Fund's financial arrangements.
General Account
Covers qualifying bulk solid substances and other HNS that are not allocated to one of the separate accounts.
Oil Account
Provides a separate accounting arrangement for contributing persistent and non-persistent oil cargoes within the applicable Convention framework.
LNG Account
Provides a separate account for qualifying liquefied natural gas cargo receipts.
LPG Account
Provides a separate account for qualifying liquefied petroleum gas cargo receipts.
Annual Cargo Reporting
Contracting States are required to submit information concerning the quantities of contributing cargo received during the preceding calendar year, in accordance with the Convention's reporting provisions.
Receiver Identification
Relevant persons receiving contributing HNS cargo must be identified and the applicable cargo quantities determined for reporting and contribution purposes.
Reporting Thresholds
Reporting and contribution obligations depend on the relevant cargo account, sector and applicable quantities received. The Convention provides specific thresholds and reporting arrangements for the different categories.
Packaged HNS Cargo
Under the 2010 Protocol, packaged HNS goods are not treated as contributing cargo for HNS Fund contribution purposes. However, incidents involving packaged HNS remain within the Convention's compensation framework.
Practical Implications for Cargo Receivers
Importers, cargo receivers and other relevant commercial interests should review their cargo classification, receipt records and reporting arrangements to establish whether their activities fall within the applicable HNS contribution requirements.
The HNS Finder provided by the IOPC Funds can assist in identifying whether a particular substance qualifies as HNS and whether it constitutes contributing cargo for reporting purposes.
Operational and Technical Implications for Shipowners and Ship Managers
Although the Convention is primarily an international liability and compensation instrument, its implementation has important operational, documentation and risk-management implications for the shipping industry.
Shipowners and technical managers should assess their exposure according to the types of cargo carried, vessel trading patterns, insurance arrangements and existing onboard procedures.
HNS Cargo Identification and Classification
Review cargo identification and classification procedures to establish whether substances carried by the vessel fall within the Convention's HNS definitions.
Cargo Documentation and Manifest Verification
Review Dangerous Goods Manifests, cargo declarations, shipping documentation and relevant cargo information to ensure consistency and accuracy in the identification of HNS substances.
Safety Management System Review
Assess whether the existing Safety Management System (SMS) adequately addresses applicable procedures for cargo identification, handling, risk assessment, emergency preparedness and incident reporting.
Emergency Response Preparedness
Review emergency response procedures for incidents involving chemical releases, toxic exposure, fire, explosion and environmental contamination, as relevant to the vessel's cargo profile.
Insurance and Financial Security
Coordinate with P&I Clubs, insurers and flag administrations to establish the required financial security, certificate issuance arrangements and supporting documentation.
Charterparty and Contractual Review
Review charterparties, bills of lading and relevant commercial agreements to establish clear allocation of responsibilities for cargo declarations, HNS information, insurance and regulatory compliance.
Shipboard Familiarization
Ensure that Masters, Chief Officers and other relevant personnel understand the operational implications of carrying HNS cargoes and the applicable emergency and documentation procedures.
Documentary and Compliance Verification
Verify that relevant statutory certificates, insurance documents, cargo records, operating procedures and supporting documentation are available and consistent with the applicable requirements.
Charterparty, Insurance and Commercial Considerations
The introduction of the HNS Convention will have implications beyond the technical management of vessels. Commercial parties involved in the transportation and receipt of HNS cargoes should review their contractual and insurance arrangements ahead of entry into force.
Charterparty Provisions
Review cargo declaration obligations, responsibility for accurate substance identification, allocation of insurance costs and contractual responsibilities in the event of an HNS incident.
Bills of Lading
Ensure that cargo descriptions and declarations provide the relevant information necessary for the identification and safe carriage of qualifying HNS substances.
P&I and Insurance Coverage
Assess the applicable insurance arrangements, policy terms, financial security and certificate requirements in consultation with the relevant insurers.
Cargo Receiver Responsibilities
Review the allocation of reporting responsibilities and the identification of persons who physically receive contributing HNS cargo under the Convention.
Preparing for the 29 November 2027 Entry into Force
With the entry-into-force date established, the remaining implementation period provides an important opportunity for the maritime industry to review existing arrangements and prepare for the new liability and compensation regime.
1. Review Vessel Cargo Profiles
Identify the types of HNS substances carried by each vessel, including bulk liquids, liquefied gases, solid bulk materials and packaged dangerous goods.
2. Assess Applicability and Certification
Establish whether the vessel falls within the applicable insurance and certification provisions and identify the requirements of its flag administration.
3. Coordinate with P&I Clubs and Insurers
Confirm the availability of appropriate insurance or other financial security and the documentation required for the issuance of the HNS certificate.
4. Review Cargo Documentation
Verify cargo identification, Dangerous Goods Manifests and relevant cargo declarations, ensuring that applicable information is accurate and available.
5. Review SMS and Emergency Procedures
Assess existing onboard procedures, emergency preparedness and relevant risk assessments for operations involving HNS cargoes.
6. Review Commercial Arrangements
Examine charterparty provisions, bills of lading, cargo declarations and relevant insurance responsibilities to address the requirements introduced by the Convention.
7. Establish Cargo Reporting Arrangements
Relevant cargo receivers and authorities should establish procedures for identifying contributing cargo, maintaining records and fulfilling the applicable reporting obligations.
Implications for the Wider Maritime Industry
The entry into force of the HNS Convention represents a significant development in international maritime liability and compensation arrangements.
The implications extend across several sectors of the maritime industry, requiring coordination between shipowners, technical managers, insurers, flag administrations, charterers, cargo receivers and other relevant stakeholders.
Shipowners and Operators
Must assess vessel applicability, insurance requirements, State certification and the operational implications of carrying HNS cargoes.
Technical Managers
Must review vessel documentation, cargo identification procedures, SMS arrangements and emergency preparedness.
P&I Clubs and Insurers
Must address the insurance and financial security requirements associated with the new international liability framework.
Flag Administrations
Must establish the relevant procedures for insurance certification, implementation and verification under the Convention.
Charterers and Cargo Interests
Must consider cargo declaration accuracy, contractual allocation of responsibilities and the implications of HNS cargo identification.
Cargo Receivers
Must establish whether their receipts qualify as contributing cargo and address the relevant reporting and contribution obligations.
Technical Compliance Considerations – PAMS Perspective
The implementation of the 2010 HNS Convention should be considered as part of the wider technical and operational compliance framework for vessels engaged in the carriage of hazardous and noxious substances.
In addition to insurance and certification, the accuracy of cargo documentation, the adequacy of onboard procedures and the effectiveness of emergency preparedness are important elements of operational readiness.
Vessel Technical and Documentation Review
Assessment of relevant vessel documentation, cargo information, statutory records and supporting compliance arrangements.
Safety Management and Operational Procedures
Review of applicable SMS procedures, operational risk assessments, cargo-related controls and emergency response arrangements.
Regulatory Compliance Assessment
Technical review of applicable international requirements and their implications for the vessel's operational profile and management arrangements.
Independent Technical Verification
Independent assessment of vessel readiness, supporting documentation and identified compliance gaps, within the agreed scope of technical consultancy.
Independent Technical Consultancy
PAMS Pacific Admiralty Maritime Services is an independent marine technical consultancy specializing in marine surveying, technical engineering, inspections, audits and regulatory compliance.
The entry into force of the HNS Convention provides an important opportunity for shipowners and technical managers to review their vessel-specific compliance arrangements and identify areas requiring technical or operational attention.
Official Regulatory References and Further Information
The following official IMO and IOPC Funds resources provide further information on the Convention, its implementation, liability limits, cargo reporting and compensation arrangements.
International Maritime Organization (IMO)
Instrument: International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea.
Protocol: 2010 HNS Protocol.
Entry into Force: 29 November 2027.
IMO – International HNS Convention and Liability Limits
International Oil Pollution Compensation Funds (IOPC Funds)
HNS Convention – Legal Framework and Compensation
HNS Reporting and Contributions
Looking Ahead to November 2027
The entry into force of the 2010 HNS Convention on 29 November 2027 represents a major development in the international maritime liability and compensation framework.
By introducing strict shipowner liability, compulsory financial security, State-issued insurance certificates and supplementary compensation through the HNS Fund, the Convention establishes a more comprehensive international framework for incidents involving hazardous and noxious substances carried by sea.
The remaining preparation period should be used by shipowners, technical managers, insurers, flag administrations, charterers and cargo interests to review their respective responsibilities and establish the necessary arrangements before implementation.
For the shipping industry, the challenge will extend beyond obtaining the required insurance certificates. Effective implementation will also depend on accurate cargo identification, appropriate documentation, operational preparedness and coordination between all parties involved in the maritime transportation of HNS cargoes.
Early assessment and preparation will be important in ensuring that vessels and their associated management arrangements are ready for the new international regime.