The International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 came into effect last Friday. The Convention was adopted to ensure that adequate, prompt, and effective compensation is available to persons who suffer damage caused by spills of oil, when carried as fuel in ships' bunkers. The Convention applies to damage caused on the territory, including the territorial sea, and in exclusive economic zones of States Parties.
The convention is modelled on the International Convention on Civil Liability for Oil Pollution Damage, 1969. As with that convention, a key requirement in the bunkers convention is the need for the registered owner of a vessel to maintain compulsory insurance coverage.
Another key provision is the requirement for direct action - this would allow a claim for compensation for pollution damage to be brought directly against an insurer. The Convention requires ships over 1,000 gross tonnage to maintain insurance or other financial security, such as the guarantee of a bank or similar financial institution, to cover the liability of the registered owner for pollution damage.
The US Coast Guard has issued a statement highlighting that that the country is neither a signatory nor party to the Convention, and “has no present intention of ratifying this” instrument. The statement continues: “As such, the U.S. cannot issue certificates relating to the bunker convention, not will the US enforce the convention on foreign ships visiting the US.”