A major international framework intended to strengthen compensation for hazardous cargo incidents at sea has moved closer to becoming operational, following fresh approvals by four European nations.

Belgium, Germany, the Netherlands, and Sweden have formally approved the 2010 Hazardous and Noxious Substances (HNS) Convention protocol, according to the International Maritime Organization (IMO). Their decision raises the number of participating countries to 12, meeting a critical threshold required for the treaty’s activation.

Ratification Milestone Reached

The 2010 HNS Convention requires at least 12 countries to ratify the agreement, including four with significant shipping tonnage. This condition has now been satisfied. The treaty focuses on ensuring prompt and adequate compensation for damage caused by hazardous and noxious substances transported by sea.

These substances include chemicals, liquefied gases, oils, and other potentially dangerous materials. The growing global transport of such cargo has increased the importance of a uniform liability system.

The convention will enter into force 18 months after participating countries collectively report at least 40 million tonnes of contributing cargo in a single year. Recent data indicates that the four newly ratifying countries handled nearly 28 million tonnes of such cargo in 2025.

Compensation Framework and Liability Rules

Under the agreement, shipowners are held strictly liable for damages up to a fixed financial limit. Beyond this, an international HNS Fund will provide additional compensation. This fund will be financed by companies receiving hazardous cargo after an incident occurs.

The total compensation available per incident is capped at 250 million Special Drawing Rights, equivalent to approximately $360 million, based on current exchange rates from the International Monetary Fund.

The framework also mandates insurance coverage for ships carrying hazardous cargo. Around 65,000 vessels worldwide are expected to require certification under the system.

Entry Timeline and Global Impact

Final cargo data from participating countries will be reviewed after May 31, 2026. If thresholds are confirmed, the convention could take effect as early as November 30, 2027.

The HNS Convention is designed to complement existing maritime liability systems, expanding coverage beyond oil spills to include fire, explosion, injury, and property damage risks linked to hazardous cargo.