The global maritime industry is nearing the entry into force of a long-delayed liability framework designed to compensate for damage caused by hazardous and noxious substances transported by sea, following new ratifications that bring the treaty closer to activation.
Belgium, Germany, the Netherlands and Sweden have now deposited their instruments of ratification to the 2010 HNS Convention, joining existing contracting states and meeting the minimum requirement of 12 states needed for the treaty to proceed toward implementation.
The convention establishes a two-tier compensation system for incidents involving hazardous cargoes such as oil, chemicals, liquefied gases, low-flashpoint liquids, and other dangerous substances carried in bulk or packaged form. It covers not only pollution damage, but also fire, explosion risks, and personal injury or property loss.
Under the framework, shipowners will be held strictly liable up to a capped limit, after which an international HNS Fund will provide additional compensation. The fund will be financed through post-incident contributions from receivers of hazardous cargoes, reflecting the “polluter pays” principle.
Total compensation per incident will be capped at 250 million Special Drawing Rights (approximately $360 million), combining both shipowner liability and fund contributions.
The treaty still requires confirmation of cargo contribution thresholds before entry into force, including at least 40 million tonnes of qualifying HNS cargo recorded across contracting states. According to current data, participating states handled close to 28 million tonnes in 2025, with further assessment expected in 2026.
If requirements are confirmed, the convention could enter into force as early as November 2027. Once active, it is expected that around 65,000 ships worldwide will need certification confirming compliance with insurance and financial security requirements.
Industry observers say the regime will significantly expand regulatory and financial exposure for shipping companies and cargo interests, particularly in sectors handling chemicals, energy products, and alternative fuels.
