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Maritime Symposium 2008 Salvage of HNS

Maritime Symposium 2008 Salvage of HNS. Jerry Rysanek Director International Marine Policy and Liability Transport Canada. November 2008. The 1996 Draft - Background.

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Maritime Symposium 2008 Salvage of HNS

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  1. Maritime Symposium 2008Salvage of HNS Jerry Rysanek Director International Marine Policy and Liability Transport Canada November 2008

  2. The 1996 Draft - Background • International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea • Shared Liability regime - Shipowners and Receivers of HNS

  3. What it is • What is covered: By reference to existing codes and agreements adopted by IMO for safe handling and carriage of dangerous goods (6,500 substances) • Who: All sea-going ships carrying HNS to, from, withinContracting State • Where: Territory, territorial sea and Exclusive Economic Zone (EEZ – 200 miles) • Damages Covered: loss of life and personal injury (onboard and outside of ship), property (including evacuation costs) and pollution damage to the environment (including cost of preventative measures)

  4. Tier 1 • Shipowner’s liability and insurance • Strict liability • Excludes acts of war, negligence or wrongful acts of public authorities, third parties or shippers of HNS • Compulsory insurance • Approved insurers and certificates • Direct action by claimants against insurer

  5. Tier 1(Cont.)

  6. Tier 2 • HNS Fund • Modeled on the International Oil Pollution Compensation Fund • HNS Fund will pay compensation post-incident when the shipowner’s liability is insufficient to provide full compensation • Contributions paid by HNS receivers • Bulk and package HNS contribute, subject to annual thresholds

  7. Tier 2 (Cont.) • Tier 2 – HNS Fund • Four accounts for contributing cargo: • AccountAnnual Threshold (tonnes) • 1) Oil Account* 150,000 persistent oils • 20,000 non-persistent oils • 2) LPG Account 20,000 • (liquefied petroleum gas) • 3) LNG Account Nil • (liquefied natural gas) • 4) General Account 20,000 • *Covers damage excluded under CLC/IOPC Fund 1992 (e.g. fire, explosion)

  8. 9 Available Compensation • Receivers: • Responsibility to collect and report the tonnage of all received HNS cargoes • If the physical receiver is an agent working on behalf of a principal, the agent could choose to disclose such a principal to the Fund, thereby passing the levy on to the end receiver • Shipowners: • Benefit of fixed and insurable limits of liability, BUT must provide evidence of insurance (compulsory insurance)

  9. The 2008 Protocol • 3 problems 3 solutions • Annual Contributions to the LNG Account • The Concept of ‘Receiver’ and Packaged HNS • Depositing Instruments of Ratification without accompanying contributing cargo reports

  10. Thank You • website: http://www.hnsconvention.org/ • Questions / Comments / Suggestions?

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