Bunkers Convention Briefing
Bunkers Convention Briefing
Bunkers Convention Briefing
Convention
LEGAL
Bunkers Convention
CONTENTS Pollution damage
The bunkers convention covers pollution damage only.
Introduction................................................................................................... 01 According to the Convention, “pollution damage” means:
Bunkers Convention................................................................................... 01
(a) loss or damage caused outside the ship by contamination
Insurance Cover............................................................................................ 01
resulting from the escape or discharge of bunker oil from the
Frequently Asked Questions................................................................. 02 ship, wherever such escape or discharge may occur,
Charterparty Clauses................................................................................ 02 provided that compensation for impairment of the
Club Circular - 6 May 2008..................................................................... 04 environment other than loss of profit from such impairment
Club Circular - 8 July 2008.......................................................................06 shall be limited to costs of reasonable measures of
Club Circular - 1 September 2008........................................................08 reinstatement actually undertaken or to be undertaken; and
Club Circular – 8th October 2008........................................................ 10
(b) the costs of preventive measures and further loss or damage
caused by preventive measures.
Introduction
Strict liability
Although damage and compensation for oil pollution caused
Under Article 3 of the Convention the shipowner will be strictly
by a tanker’s bunkers is covered in some cases by the Civil
liable for pollution damage in most circumstances.
Liability Convention (CLC), there has been no corresponding
pollution regime for ships other than tankers, all of which carry “Shipowner” in the Convention means “the owner, including
oil for bunkers with the resulting threat of pollution following an the registered owner, bareboat charterer, manager and
incident. operator of the ship”.
To overcome this, the International Convention on Civil Liability Limitation of liability
for Bunker Oil Pollution Damage, 2001, was adopted in March Article 6 of the Convention provides that a shipowner is entitled
2001 and entered into force on 21 November 2008. The to limit his liability to amounts provided for under applicable
Convention provides a liability, compensation and compulsory national or international regimes such as the Convention on
insurance system for the victims of oil pollution damage Limitation of Liability for Maritime Claims 1976 (LLMC 1976) as
caused by spills of bunker oil. amended and also contains an exclusion of liability for acts of
The Convention will make the shipowner liable to pay war (although the definition of war does not include terrorism),
compensation for pollution damage (including the costs of for damage wholly caused by the intentional act of a third-party
preventive measures) caused in the territory, including the and for negligence of an authority responsible for maintenance
territorial sea of a State party, as well as its exclusive economic of navigation aids.
zone or equivalent area.
Insurance Cover
The shipowner will have a strict liability but will be entitled to
Registered owners of any sea-going vessel and seaborne craft
limit that liability.
over 1,000 GT, of any type whatsoever, and registered in a State
This briefing provides information about the Bunkers party or entering or leaving a port in the territory of a State
Convention, answers some frequently asked questions and party, are required to maintain insurance which meets the
includes copies of the relevant Club Circulars. requirements of the Convention. Such ships will be required to
carry a certificate of insurance to show that they have the
Bunkers Convention necessary compulsory insurance cover required by the
International Convention on Civil Liability for Bunker Oil Convention.
Pollution Damage, 2001 The certificate of insurance is issued by a State (see frequently
The aim of the Convention is “to ensure that adequate, prompt, asked questions below). Before issuing such a certificate the
and effective compensation is available to persons who suffer State will require a “Bunkers Convention blue card” issued by an
damage caused by spills of oil, when carried as fuel in ships’ insurer evidencing that insurance meeting the liability
bunkers” (International Maritime Organization (IMO) requirements of the Bunkers Convention is in place.
website: www.imo.org ).
Insurance cover for liabilities arising from the Bunkers
Convention, and the Bunkers Convention blue card providing
evidence of insurance, are provided by the P&I Clubs, subject to
certain provisos including shipowners having in place P&I war
risks cover on standard terms with a separate limit for P&I
liabilities (see frequently asked questions below).
Disclaimer
The purpose of this publication is to provide a source of information which is
additional to that available to the maritime industry from regulatory, advisory,
and consultative organisations. Whilst care is taken to ensure the accuracy
of any information made available no warranty of accuracy is given and users
of that information are to be responsible for satisfying themselves that the
information is relevant and suitable for the purposes to which it is applied.
Certification requirements
The Convention provides a liability, compensation and compulsory insurance system for the victims of oil pollution damage
caused by spills of bunker oil. The Convention will make the shipowner [1] liable to pay compensation for pollution damage
(including the costs of preventive measures) caused in the territory, including the territorial sea of a State party, as well as its
exclusive economic zone or equivalent area.
Registered owners of any sea going vessel and seaborne craft over 1000 gross tonnage, of any type whatsoever, and registered in
a State party or entering or leaving a port in the territory of a State party, will be required to maintain insurance which meets the
requirements of the Convention and to obtain a certificate issued by a State party attesting that such insurance is in force. The
State issued certificate must be carried on board at all times.
The regime closely follows the well established liability and insurance provisions which apply to oil tankers under the Civil Liability
Convention (CLC).
Paul Jennings
Deputy Managing Director - North Insurance Management Limited
As Managers on behalf of the North of England P&I Association Limited
[1] Defined as including the registered owners, bareboat charterers, managers and operators
State certification
(i) Ships registered in State Parties
Ships registered in a State Party need only obtain a State certificate from that State. This will be treated as evidence of insurance
when calling at any port or terminal in any State Party. The State certificate will be issued against the provision of a Blue Card issued
by the Club in the required form (see below). Members with ships registered in a State Party are recommended to contact the
authorities in that State in order to confirm the application procedures for Bunkers Convention certificates.
(ii) Ships registered in non-State Parties
Ships registered in a State which is not party to the Convention must obtain a State issued certificate from a State Party to the
Convention. The Secretariat of the International Group and the International Chamber of Shipping have been in contact with the
administrations in a number of State Parties to identify those States willing to issue certificates for ships which are not registered
under their flag. The International Group has also submitted papers to the March and June sessions of the IOPC Funds to raise
awareness of the need for State Parties to agree to issue the certificates to ships registered in non-State Parties. States are, to date,
reluctant to agree to issue certificates for ships registered in non-State Parties unless calling at their ports because of the
administrative burden involved in issuing the necessary, and large, number of certificates involved.
The International Group and the International Chamber of Shipping are continuing discussions with a number of State Parties to
seek agreement that they will issue the certificates to all ships having a gross tonnage greater than 1000 as soon as possible
irrespective of whether they are calling at their ports after the entry into force of the Convention. Until these discussions are
concluded and a satisfactory outcome is reached, it will not be possible for the Club to issue Blue Cards to ships registered in a
non-State Party since the Blue Card is required to be addressed to a State Party that is willing to issue the certificates for such ships.
Members will be kept informed of progress in these discussions.
John H Howe
Director - North Insurance Management Limited
As Managers on behalf of the North of England P&I Association Limited
UK
CLC Bunkers
Maritime and Coastguard Agency
Bay 2/13
Spring Place
105 Commercial Road
Southampton
SO15 1EG
UK
Tel: +44 23 80329110 (public enquiries)
Fax : +44 23 8032 9447
Web: www.ukshipregister.co.uk/ukr-home/forms.html
Email: [email protected]
General enquiries: [email protected]
Contact person: Richard Tong +44 23 80 329202
Liberia
Liberian International Ship & Corporate Registry
ATTN: Bunker CLC Applications
8619 Westwood Center Drive, Suite 300
Vienna
Virginia 22182
USA
Tel: +1 703 790 3434
Fax: +1 703 790 5655
Email: [email protected]
or,
John Howe
Director - North Insurance Management Limited
As Managers on behalf of the North of England P&I Association Limited
John Howe
Director - North Insurance Management Limited
As Managers on behalf of the North of England P&I Association Limited