The global shipping industry is preparing for a major regulatory change after the International Maritime Organization (IMO) confirmed that the 2010 Hazardous and Noxious Substances (HNS) Convention will enter into force on Nov. 29, 2027. The treaty establishes the first international compensation framework specifically designed for accidents involving hazardous and noxious cargo transported by sea.

The milestone was reached after the treaty met all legal conditions for entry into force on May 29, 2026. The development comes as global maritime trade increasingly relies on the transport of chemicals, liquefied natural gas (LNG), liquefied petroleum gas (LPG), fertilizers, acids and other hazardous materials.

New Compensation System For Maritime Hazardous Cargo Accidents

The HNS Convention expands existing international maritime liability regimes that currently address oil pollution and hazardous shipwrecks. It introduces a compensation mechanism covering loss of life, personal injury, property damage, environmental harm, economic losses and cleanup costs resulting from incidents involving more than 2,000 hazardous substances carried by sea.

IMO Secretary-General Arsenio Dominguez described the treaty's activation as a significant step in closing a longstanding gap in the global maritime compensation framework. The convention aims to provide legal certainty for governments, insurers and shipping companies while ensuring timely compensation for affected communities.

Polluter Pays Principle At The Core Of The Treaty

Under the convention, shipowners will face strict liability for damages and must maintain certified insurance or other financial security. When compensation exceeds a shipowner's liability limit, an HNS Fund will provide additional payments.

The fund will be financed by receivers of hazardous cargo in contracting states after an incident occurs. Total compensation is capped at 250 million Special Drawing Rights (SDR), equivalent to approximately US$360 million at current exchange rates.

Industry estimates indicate that about 65,000 vessels worldwide will require HNS insurance certificates or equivalent financial security once the convention takes effect.

Growing Importance As Chemical And Alternative Fuel Trade Expands

The treaty enters into force amid rising global shipments of industrial chemicals and alternative marine fuels. Experts view the framework as increasingly relevant as shipping plays a central role in global energy and manufacturing supply chains.

Twelve countries have ratified the protocol, including Belgium, Canada, Denmark, France, Germany, the Netherlands, Norway, South Africa, Sweden and Türkiye. Reports submitted to the IMO confirmed that contributing cargo volumes exceeded the required threshold of 40 million tonnes during the 2025 reporting year, triggering the convention's entry into force timetable.