The International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS Convention) is slated to enter into force on November 29, 2027. This development marks a significant change in the global maritime regime concerning liability and compensation for incidents involving hazardous and noxious substances (HNS).
The HNS Convention aims to provide a comprehensive system for compensation to victims of HNS incidents, covering a wide range of substances including chemicals, liquefied gases, and other dangerous goods. It establishes a two-tier system for compensation, involving shipowners' liability and a supplementary fund, similar to the existing oil pollution compensation regime.
For freight forwarders and shippers, the implementation of the HNS Convention means increased scrutiny on the proper declaration, packaging, and handling of hazardous materials. While the convention primarily impacts shipowners and cargo owners directly, forwarders will need to ensure their clients are fully compliant with all regulations to avoid potential liabilities. This could lead to stricter documentation requirements and potentially influence insurance costs for HNS shipments. Understanding the new liability framework will be crucial for managing risk and ensuring smooth operations when transporting such cargo.
