1. The HNS Convention: Thomas Liebert Role of the IOPC Funds
Special Consultative Meeting
Rotterdam, The Netherlands, 14 – 15 June
Thomas Liebert
International Oil Pollution Compensation Funds

2. Hazardous and noxious substances spills:
They are real!
Reported HNS incidents just to name a few
Left picture: MSC Chitra
On August 7 the MSC Chitra was involved in a collision with another vessel near Mumbai, the commercial capital of India. As a result of the incident, the MSC Chitra, a Panama flagged cargo vessel spilled some 400 tons of oil into the sea off Mumbai which threatened to impact environmentally sensitive areas along the eastern coast of Maharashtra. The collision also led to the closure of India's two busiest ports, the Mumbai Port Trust and the Jawaharlal Nehru Port Trust for several days.
The Chitra was carrying over 1200 cargo containers, a number of which entered the waterway when the vessel listed heavily following the collision posing a risk to shipping in the area. However, an additional risk was quickly identified: it came from a container carrying bottles of aluminium phosphide which had fallen into the sea. When this chemical compound is exposed to water, a toxic gas, known as phosphine gas is released.
Centre picture: M/V HYUNDAI FORTUNE
The M/V HYUNDAI FORTUNE is the latest container ship to suffer a major explosion and fire at sea. Initial reports of this incident that occurred on March 21, 2006 in the Gulf of Aden from M/V Hyundai Merchant Marine allege the initial cause was fireworks. There were reportedly 7 containers of fireworks stowed aft of the accommodation, but the IMDG code prescribes these should be stowed above decks; however this picture of a large hole on the port side and above the water line indicates something exploded below decks.
Right picture: MSC Napoli
Containers washed ashore after the Napoli incident on 18 January 2007
192 incidents between 2002 – 2010
106 incidents in the Mediterranean Sea (1988 – 2007)
423 spills in the US (1992 –1996)
24 incidents reported worldwide (April 2010 – January 2011, draft)
Sources : IMO (2009 and 2011), International Group of P&I Clubs (2010)

3. HNS Convention A history 1996 HNS Convention A number of shortcomings
heavy reporting requirements on packaged substances
unfair sharing of cost
issue of receiver / agent / titleholder
no agreed comprehensive list of HNS
no enforced reporting obligation
14 States ratified, 2 submitted reports

4. Expediting entry into force
2010 HNS Protocol:
Overcoming obstacles to ratification
Expediting entry into force
Reporting issues
About 6,500 hazardous and noxious substances and no consolidated list
Packaged goods removed from reporting requirement; only considers bulk. Ship owner’s liability increases for packaged goods
More administrative burden
LNG cargo titleholder is responsible for contribution
Shifts responsibility for contribution to LNG cargo receiver unles otherwise agreed
Unfair cost sharing
Member States can claim without reporting contributing cargo
Ratification of Protocol must be accompanied by reports. Compensation suspended in case of default, except for death and personal injury

5. How Organised in 4 accounts for contributions and compensation payment
HNS Convention
As modified by the 2010 Protocol
What By reference to existing codes and conventions for safe handling and carriage of dangerous goods
How Organised in 4 accounts for contributions and compensation payment
Who All sea-going ships carrying HNS to, from, within Member States (+ EEZ exception)
Where Territory, territorial sea and exclusive economic zone
Cargo Accounts Table
Establishment
of account
Contributions
to account
General Account
40 million tonnes*
Bulk solids
Other HNS
tonnes
Oil Account
350 million tonnes
Persistent oil
Non-persistent oil
tonnes
LNG Account
20 million tonnes
LPG Account
15 million tonnes
* Condition for entry into force

6. Preparation for entry into force
Overview
Developments
Status
IMO
Prepare a consolidated text of the Convention/Protocol
Draft an overview of the Convention/Protocol
Approved 8 Apr 2011 by LEG 98
Completed 23 May 2011
Both texts available online
IOPC Funds
Draft Contributing Cargo Reporting Form to assist States at the time of ratification
Form approved on 30 May 2011
Identify potential State Parties and support signature, ratification and accession
Ongoing
Issue circular containing the list of HNS referred to in the IMDG/IMSBC Codes
Make available indicative lists of all HNS covered by Protocol
Complete
Establish a technical cooperation programme
Develop an HNS calculator to facilitate reporting and compensation handling
Digitise scanned list of substances, making it navigable
Test version of calculator to become available in September
Digitisation of IMDG Code (1996) complete on 30 May 2011; will be made available online for open access
Prepare guidelines to help States with implementation

7. 1. List of substances Preparation for entry into force
IOPC Funds’ work
1. List of substances
2002 –
2005
An HNS Convention Contributing Cargo Calculator prototype with a database of 100 chemical becomes available
The HNS CCCC includes a database of up to 6,000 chemicals
Not kept current after 2006 due to lack of ratifications
IMO International Conference agrees on references for the HNS lists
IMO Legal Committee agrees to disseminate and review lists
Digitisation of the IMDG Code (1996) has been made electronically available
Will become part of the compensation element of the HNS calculator
2010
2011
IMDG Code
An internationally agreed code, grouping together dangerous goods
Fixed as defined by the HNS Convention (IMDG96 version)
IMSBC Code
International Maritime Solid Bulk Cargoes Code is dynamic
Will be revised every two years

8. List of substances (cont’d)
References
Bulk
Can be found in
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
Liquefied Gases - Chapter 19 of IGC Code
VI Liquids
Flashpoint not exceeding 60⁰C
VII Solids
Both in IMSBC Code and IMDG Code (1996) in packaged form
Packaged goods
Can be found in IV
IMDG Code (1996)

9. Preparation for entry into force
IOPC Funds’ work
2. HNS Calculator

10. 2. HNS Calculator (cont’d)
HNS CCCC Prototype

11. 2. HNS Calculator (cont’d)
Potential issue and key tasks

12. Preparation for entry into force
IOPC Funds’ work
Support to expedite signature, ratification and accession
Development of guidelines to implement the HNS Convention into national law
Take into account the Ottawa agreement as revised by the “Rotterdam meeting”!?
Awareness raising
Worldwide workshops
Production and dissemination of information material

13. Preparation for implementation
Considerations for the future
Secretariat
General consensus for a joint secretariat with IOPC Funds
Headquarters agreement
Rules of procedure
Internal and financial regulations
Handling of claims
Establishment of claims committee comprising 7 – 15 members
Composition and mandate of the committee
Claims guidelines
Financial issues
Own accounts and budget
Appointment of an external auditor

14. Implementation and application:
Make it happen
At international level
Protocol is open for signature until
31 October 2011
When 12 States have ratified
Protocol enters into force 18 months later
Denmark signs up first (14 April 2011)
Including 4 States each with no less than 2 million units of gross tonnage
The general account’s contributing cargo volume must be at least 40 million tonnes

15. Thomas Liebert www.iopcfund.org www.hnsconvention.org
Head, External Relations and Conference Deparment