Ship owners will be liable for pollution damage

An international agreement covering liability for bunker spills comes into force in November when ship owners will be liable for pollution damage. The IMO’s Convention on Civil Liability for Bunker Oil Pollution 2001 was ratified by the required number of IMO member states on 21 November 2007, allowing it to enter into force a year later.

The Convention provides a system of compensation for victims of bunker spills from vessels other than tankers. The regime closely follows the liability and insurance provisions which apply to oil tankers under the Civil Liability Convention (CLC).

Ship operators will be strictly liable for pollution damage and the registered owners of vessels over 1000 gross tonnes must have insurance which meets the requirements set out in the Convention.

A certificate must be carried on board to show the insurance is in place. The International Group of P&I Clubs has updated its Oil Pollution Charterparty Clauses to take into account the new Convention. “It is vitally important that owner members make sure that they have, or can obtain, by the commencement of their charterparty, the necessary certificate before incorporating this new Clause into their charterparties,” the international shipping association BIMCO said this week.