Highlights from the November 2024 sessions of the governing bodies of the IOPC Funds
Dr Rosalie Balkin, AO, Secretary General CMI
The governing bodies of the International Oil Pollution Compensation Funds [IOPC Funds] met from 5 – 8 November 2024 at the IMO headquarters in London. In attendance were 86 1992 Fund Member States including 24 Supplementary Fund Member States, 3 observer States and 13 observer organisations. Although the meeting was held in person it was complemented by a passive streaming service.
New Incident: the Terranova (The Philippines)
The Secretariat informed those present of new incidents involving the IOPC Funds, including the Terranova which encountered heavy weather in July 2024 during typhoon Gaemi and capsized in Manila Bay, the Philippines. The Philippines Coast Guard and the insurers, Steamship Mutual, promptly responded and engaged contractors from the vessel to contain and recover oil and from the sheen which appeared following the incident and indicating that the hull was breached and oil was being slowly released from the cargo tanks.
By the time of the November 2024 Committee session, cleanup and response operations had resulted in emptying the cargo tanks of the Terranova and 97% of the cargo had been removed or recovered. Initial estimates indicate that claims for pollution damage will surpass the 1992 Civil Liability Convention limits but if it does, pursuant to the STOPIA 2006 the insurer, Steamship Mutual, which is a Member the International Group of P& I Clubs, would be liable up to the agreed limits, following which the 1992 Fund would be liable (up to the 1992 IOPC Fund limits) .
The 1992 Fund Executive Committee decided to authorise the Director to make payments in respect of losses arising from the Terranova incident and to sign an agreement on interim payments with Steamship Mutual.
New incident: Marine Honour (Singapore)
On 14 June 2024 the product tanker Marine Honour, which was stationary in Pasir Panjung Terminal, Singapore, alongside a container ship, Ever Blink, was struck by the hopper dredge Vox Maxima, causing the Marine Honour to collide with the Ever Brink. Marine Honour’s hull was also breached, resulting in an estimated 817 cubic metres of fuel oil being released into the environment. According to the available information, claims relating to this incident will exceed the limit of liability of the insurer under the 1992 CLC. The STOPIA will not apply as the owner of the Marine Honour is not a party to that agreement. The 1992 Fund will therefore be called on to pay compensation. The 1992 Fund is waiting for claims from the Maritime and Port Authority (MPA) as well as from other government agencies in Singapore for their cleanup and response costs, estimated to constitute a significant portion of the total amount to be paid in compensation. The 1992 Fund Executive Committee decided to authorise the Director to make payments in respect of losses arising from this incident
Princess Empress, the Philippines (February 2023)
The Secretariat informed the meeting that it was continuing to work with the insurer of the Princess Empress (the shipowners’ P&I Club) to process claims and pay compensation. To date, 26,034 claimants in the fisheries sector had received payments totalling PHP 823.3 million. The Club and the 1992 Fund had also approved the assessments of claims from 9,030 fish traders that had suffered losses due to the lack of alternative products to sell during fishing bans in the areas affected by the spill.
Bow Jubail (Netherlands June 2018)
In May 2024 the Rotterdam District Court determined the amount of the limitation fund plus interest, and the shipowner’s P&I Club had established the limitation fund plus interest in the amount of EUR 23.03 million and paid the sum into court. The six-year anniversary of the spill occurred on 23 June 2024 and the time limit for claimants to file claims with the limitation fund assessor expired in August 2024. Forty-four claims were submitted totalling EUR 30.8 million. The 1992 Fund and the shipowner’s P&I Club have instructed experts to begin assessing these claims as a court hearing is expected for January 2025.
Election of Chairs of the governing bodies
Following the statement by Ambassador Bandini (Italy) that he had decided to step down as Chair of the 1992 Fund Assembly at the end of the current session, the 1992 Fund Assembly decided to elect the current Chair of the Supplementary Fund Assembly, Mr Francois Marier (Canada) as the interim Chair of the 1992 Fund Assembly pending a decision being taken at the next regular session. The current First Vice-Chair of the Supplementary Fund Assembly, Mr Andrew Angel (UK) was elected as Chair pending a decision being taken at the next regular session.
Fulfilment by Member States of their obligation to submit oil reports and ensure payment of contributions
The Secretariat informed delegates that 27 Member States had not yet submitted oil reports and a number of these had reports outstanding for several years. The issue accordingly remains a matter of significant concern to the governing bodies. A document identifying States which would be subject to 1992 Fund Assembly Resolution No12 and Supplementary Fund Assembly Resolution No 3, under which payment of compensation to Government authorities in a State affected by an incident would be postponed if they had outstanding reports or unpaid contributions for more than two years.
The Director reported that significant progress had been made in the application of 1992 Fund Assembly Resolution No13 and Supplementary Fund Resolution No 5, which authorised him to issue invoices based on estimates, including retrospectively in relation to past periods, when no oil reports had been submitted.
Development of a guidance document—Procedures for determining whether a ship falls under the 1992 Civil Liability Convention or the 2001 Bunkers Convention
The governing bodies endorsed the text for a footnote for future inclusion in the IOPC Funds’ publication Guidance for Member States, Consideration of the Definition of “Ship”, the purpose of which was to establish a procedure to help determine whether a vessel would be classified as a ‘ship’ under the 2001 Bunkers Convention or under Article 1(1) of the 1992 CLC.
Potential Impact of International Sanctions on the International Liability and Compensation Regime
The Secretariat highlighted the issues, risks and dangers and the potential impact of international sanctions on the international liability and compensation regime, noting the impact on many of the Clubs in the International Group, which were unable to continue to insure vessels trading or carrying Russian crude oil. The Secretariat also referred to guidance issued by the IMO Legal Committee in this regard.
Risk of Uninsured and Unsafe Ships
The governing bodies noted with satisfaction that the internal procedure to be followed by the Secretariat in the event of an incident had been updated to include additional details on the information necessary to determine the applicability of the 1992 CLC, the 1992 Fund Convention and the Supplementary Fund Protocol, as well as to identify the parties involved, in the event of an incident where a ship was unsafe or uninsured.
The governing bodies also endorsed the guidance for Member States in such situations, subject to amendments agreed at the session. In addition, they adopted the revised Resolutions on Raising Awareness of the Risk of Uninsured or Unsafe Ships (1992 Fund Assembly Resolution No 14 and Supplementary Fund Assembly Resolution No 6, respectively.