About
Subject to certain limited exceptions, the Bunker Convention imposes strict liability on the ship-owner for spillages of bunker oil caused by any sea-going vessel in the territory (including the territorial sea and the exclusive economic zones) of contracting states.
Liability under the Bunker Convention may be limited pursuant to applicable national or international limitation regimes, but the Bunker Convention does not itself provide for any provisions on the limitation of liability.
Similar to the International Convention on Civil Liability for Oil Pollution Damage, the Bunker Convention provides for a compulsory insurance regime. The owner of a vessel with a gross tonnage exceeding 1,000 tons must maintain insurance or other financial security to cover the liability for pollution damage in an amount equal to the limits of liability under the applicable limitation regime (however, not exceeding an amount calculated in accordance with the Convention on Limitation of Liability for Maritime Claims 1976 (as amended)).
Ships shall at all times carry a certificate attesting that the ship-owner maintains the required insurance. Such certificate is issued by the appropriate authority (e.g. the Norwegian Maritime Authority for Norwegian registered ships) of a contracting state upon application from the ship-owner.
Another key provision is the right for direct action, which allows a claim for compensation for pollution damage to be brought directly against an insurer.
Who does it impact?
- Owners of ships with a gross tonnage exceeding 1,000 tons that use bunker oil for the operation or propulsion of their ships.
- P&I insurers, as the Bunker Convention allows for compensation for pollution damage to be brought directly against an insurer.
Status: In force
The Bunker Convention was adopted on 23 March 2001 and entered into force on 21 November 2008.
Relation to other initiatives and regulations
- The Bunker Convention was adopted under the auspices of the International Maritime Organization (IMO).
- The Bunker Convention is modelled on the International Convention on Civil Liability for Oil Pollution Damage ('CLC').
- As with the CLC, a key requirement under the Bunker Convention is the need for the registered owner of a vessel to maintain compulsory insurance cover.
- Note that the Bunker Convention does not apply in circumstances where the International Convention on Civil Liability for Oil Pollution Damage (CLC) applies, meaning that any vessel governed by the CLC will not be affected by the Bunker Convention.
Thommessen's comments
The most practical implication of the Bunker Convention is that the owner of a ship with gross tonnage exceeding 1,000 tons must ensure to maintain compulsory insurance or other financial security and at all times carry an attesting certificate on board the ship.
Whereas the International Convention on Civil Liability for Oil Pollution Damage channels all liability to the 'registered owner', the Bunker Convention has a much wider scope as it defines ship-owner as 'the registered owner, bareboat charterer, manager and operator of the ship'.
Ships trading to countries that are party to the International Convention on Civil Liability for Oil Pollution Damage and/or the Bunker Convention must provide evidence of insurance covering the liability of the registered owner. A ship sailing without having the required insurance or certificate runs the risk of being detained by local authorities.