A long-awaited international compensation regime covering accidents involving hazardous and noxious substances HNS, at sea is finally set to enter into force in November 2027, closing a major gap in shipping’s liability framework as trade in chemicals and alternative fuels continues to expand.

The International Maritime Organisation IMO, confirmed that the conditions for the 2010 HNS Convention had been met on May 29, triggering the treaty’s entry into force 18 months later, on November 29, 2027.

The convention establishes the first global liability and compensation regime for incidents involving more than 2,000 hazardous substances carried by sea, including chemicals, acids, fertilisers, alcohols, LNG, LPG and other non-oil cargoes.

“This treaty will ensure that those affected by hazardous cargo incidents can access fair and timely compensation, while providing legal certainty for industry and governments,” said Arsenio Dominguez, the IMO’s secretary-general.

The entry-into-force threshold was reached after Belgium, Germany, the Netherlands and Sweden ratified the protocol in April, bringing the number of contracting states to 12. Cargo reporting data also confirmed that more than 40m tonnes of qualifying HNS cargo were received by participating states during 2025.

Under the regime, shipowners will be subject to strict liability for damage arising from HNS incidents and must carry state-certified insurance or other financial security. Around 65,000 ships are expected to require HNS certificates.

The convention also establishes an HNS Fund, financed by receivers of hazardous cargo in contracting states, to provide additional compensation once a shipowner’s liability limit has been exhausted.

Total compensation will be capped at 250m special drawing rights, equivalent to roughly $360m per incident at current exchange rates.

The treaty complements existing international compensation frameworks covering oil pollution and hazardous wreck removal, extending similar protection to a much broader range of dangerous cargoes increasingly carried by the global fleet.

Source: Splash24/7