1. Implementation of the HNS Convention and its Protocol The role of the IOPC Funds
Thomas Liebert
Head, External Relations and Conference
International Oil Pollution Compensation Funds
7 December 2010
UNCTAD - Geneva

2. Operation of the HNS Fund
Governed by an Assembly composed of all Member States
Will operate in a similar way to the 1992 Fund
Assessment and payment of claims for compensation
Receive reports of contributing cargo
Levy contributions
Close cooperation with P&I Clubs, industry and governments

3. Secretariat of the HNS Fund
HNS Fund will be administered by a Secretariat, headed by a Director
Joint Secretariat with the IOPC Funds
Concept confirmed by IOPC Governing Bodies in October 2010
enable the HNS Fund to benefit from the experience of the IOPC Funds
reduce administrative costs for both the IOPC Funds and the HNS Fund

4. List of substances Bulk i. Oils Regulation I Appendix I MARPOL 73/78
ii. Liquids Regulation 1.10 Annex II MARPOL 73/78
iii. Liquids Chapter 17 of IBC Code
v. Gases Chapter 19 of IGC Code
vi. Liquids flashpoint not exceeding 60C
vii. Solids IMSBC Code, if also covered by IMDG Code (1996) in packaged form
Packaged
iv. IMDG Code

5. List of substances (Latest developments)
IMO Legal Committee – November 2010
Agreed the references for the HNS list
IMDG Code of (fixed)
IMSBC Code (dynamic)
Indicative list that remains dynamic
Need to review it every two years
To be available on IMO and HNS Fund websites

6. What is the reporting requirement?
Before the Convention enters into force
States must report to the Secretary-General of IMO total quantities of contributing cargo for each account and sector
After the Convention has entered into force
States must report to the Director of the HNS Fund the contacts of each individual contributor in that State and quantities received in respect of each account and sector

7. HNS Convention Contributing Cargo Calculator (HNS CCCC)
Development of the system
Original idea in HNS Correspondence Group – 2001
Proposal approved by 1992 Fund’s Assembly – 2001
Working prototype with database of 100 chemicals – 2002
Final system including full database of ~6000 chemicals – 2004/2005

10. Reporting contributing cargo
Correct reporting of contributing cargo is essential to successful implementation of the HNS Convention
HNS CCC to be back online in 2011
Requires effort by potential contributors and States
Some challenges but not impossible!

11. Technical Cooperation and assistance
International cooperation programme
Resolution 2 of the 2010 HNS Protocol
IMO to set up funding capability to assist States for implementation
Linked with the support to the OPRC-HNS Protocol on preparedness and response to HNS spills
Technical expertise available
From IMO and IOPC Funds
Network of experts

12. It is real! No worldwide statistics available, but:
109 significant shipping incidents involving HNS recorded and analysed worldwide
106 incidents/near misses in the Mediterranean Sea ( )
423 spills from ships or port installations in the US over 5 years ( )

13. Information available on HNS
Guide to the Implementation of the HNS Convention
HNS Brochure (Revised in April 2010)
HNS Convention website / IOPC Funds

14. Extra slides

15. Cargo accounts table

17. Incidents in 2005 by vessel type
and HNS cargoes
Vessel type Number HNS Cargoes
Ro / Ro ferry 2 Carbide, LPG Tanks
Chemical / 20 Non-persistent oils, toluene, Product tanker benzene, sulphuric acid, palm oil, sunflower oil, fluorosilicic acid, alcohol
General cargo ship 6 Gas cylinders, fireworks, explosives, misc. chemicals
Container ship 5 Formaldehyde, misc. chemicals
LPG tanker 2 Propane
LNG tanker LNG
Total 36 incidents

18. IOPC Funds HNS Fund Shipowner / Insurer Shipowner / Insurer
CLC/Fund Convention
Pollution damage by persistent oil from tankers ?
HNS Convention
Damage by HNS
Pollution damage by bunker spill from non-tankers
Damage in respect of passengers
CLAIMANT
Bunker Convention
Athens Convention
Shipowner / Insurer
Carrier / Insurer

19. SCENARIO 1 HNS Convention only
Chemical tanker ( GT) with cargo of benzene ruptures tank during
berthing. Some immediate deaths amongst caged fish in port area and
possible long term effects to mariculture and human health.
HNS Convention
Shipowner million SDR
HNS Fund million SDR
Total million SDR
Preventive measures,
Property damage,
Studies of damage to
environment & human health
Economic loss due to preventive
measures & property damage

20. SCENARIO 2 HNS Convention, CLC/Fund Convention,
Bunker Convention & Athens Convention
Chemical tanker ( GT) and cruise ship ( GT) collide, killing 5 and injuring 30 passengers and breaching the cruise ship’s bunker tanks. The tanker spills some of its cargoes of lube oil & epichlorohydrin, killing 10 more passengers.
HNS Convention
Shipowner million SDR
HNS Fund million SDR
Total million SDR
CLC/Fund Convention
Shipowner million SDR
1992 Fund million SDR
Supp. Fund million SDR
Total million SDR
Damage caused by epichlorohydrin, including:
passenger deaths
Damage caused by lube oil, including: cleanup
Bunker Convention
Shipowner million SDR
Total million SDR
Athens Convention
No fault
Carrier million SDR
( SDR per passenger)
With fault
Carrier million SDR
( SDR per passenger)
Damage caused by bunker fuel, including: cleanup,
property damage,
consequential economic loss
Damage caused by collision:
passenger deaths & injuries

21. Examples of HNS Bulk Liquids MARPOL IBC Code
Category A: tetra-ethyl lead, coal tar
Category B: styrene monomer, chloroform
Category C: sulphuric acid, coconut oil
Category D: sodium hydroxide solution, fish oil
IBC Code
molten sulphur, sodium chlorate solution
acetone, ethyl alcohol

22. Examples of HNS (Cont.) Bulk - cont. Packaged Oils Gases Solids
persistent oils, eg crude oil, heavy fuel oil
non-persistent oils, eg gasoline, jet fuel
Gases
LPG, LNG, ammonia, chlorine
Solids
potassium nitrate, sulphur
Packaged
acids, cyanides, pesticides, ammunition