149

149. Highlight the following amendments to IMO Conventions and its

effects in ship operation thereof. Mention their date of entry into force
(a) CLC and Fund Convention (b) SOLAS-IMDG Code
An older version of CLC convention was adopted by IMCO in 1969 and came into force
on 19-6-75. An amendment was adopted in 1992 and entered into force on
30th May 1996. In October 2002 another amendment, giving the new limits
for liability was adopted and entered into force on 1-11-2003.
Objectives:1. Ensure adequate compensation is available to persons who
suffer from oil pollution by ships even if the owner is unable to pay the same.
2. Adopt uniform international rules & produces to determine civil liability etc.,
for losses due to pollution of oil from ships. (Note : civil liability means
responsibility to compensation etc. in money. It does not include criminal
liability may be finalized by fines and / or imprisonment etc.,)
3. To encourage government and others to feel more confident in taking early
and decisive action in containing / minimizing the adverse effects of oil
pollution .
Salient features of this convention :
The owner of every tanker is liable for pollution damage caused by his tanker
(even though he may have taken all possible care and precautions) unless the
damage is caused by reasons external to (i.e., not connected with) the
ownership and operation of the tanker) This strict liability is based on the
principle "polluter may pay.
The owner of every tanker may limit his total liability in the following
manner. For a ship not exceeding 500 gt liability is limited to 4.51 million
SDR.
For a ship 5000 to 140,000 gt liability is limited to 4.51 million SDR plus 631
SDR for each additional gross tonnage over 5000.
For a ship over 140,000 gt liability is limited to 89.77 million SDR (1 SDR =
15 GF, 1 GF = 65.5 mg of Gold of 900 fineness).
No claim can be made against the charter include Bare boat, master, pilot
crew, salver or agent of the ship.
After a pollution incident, if owner wishes to avail of the benefit of limitation
as described above, he deposits a run equal to its maximum liability either
with the court or with any other competent authority of the country.
If the owner incurs any expenses to prevent or minimize pollution damage,
then such expenses are deductible from the amount deposited by the owner in
the same ratio as other claims on the fund. The object of this provision is to
 encourage immediate measures by the owner to minimize / contain damage
and be willing to spend money therefore.
Every tanker of 2000 GT and above has to maintain an insurance or other
financial security (such as a bank guarantor) to ensure that the tanker can meet
her pollution damage liabilities to the extent indicated above.
The flag state shall issue a certificate to each ship after she has complied with
the above condition regarding financial security.
The certificate must be carried on the ship and must show the name of the
insurer etc., giving security in respect of the ship certificates by all countries
that have ratified the convention.
The liability insurer (P & I clubs) of the ship owner usually provides the proof
of insurance policy / financial security. On the basis of this document the flag
state issues the "certificate of civil liability of oil pollution damage" (CLC
certificate)
The certificate shall not be valid beyond the validity of the insurance policy.
Any one who suffers loss due to oil pollution from a ship may she either the
owner of the V/L or even the insurer who has issued the policy within three
years of the loss. Ever if the owner goes into liquidation, the insurer
continuous to be liable to those who may have suffered a loss.
Fund Convention was first adopted in 1971. This was amended and renamed
in 1992. Entered into force 30-5-96. Aim of this convention is to provide
compensation for losses due to pollution where the security provided by the
1992 CLC convention is inadequate. Fund provides supplementary
compensation to oil pollution disasters. The fund convention is an attempt to
ensure that losses due to oil pollution damage are borne not only by the
shipping industry, but in part also borne by the cargo interests.
Salient features : 1. All persons / companies in any country importing
more than 150,000 tons of oil in any year shall make contributions to the fund.
This fund is managed as an independent entity under the overall supervision
of al director who is appointed by and responsible to IMO.
2. October 2000 amendments which entered into force in 1-11-2003 raised the
max. amount of compensation to 203 million SDR as compared to 135 million
SDR. However, if three states contribute to the fund receive more than 600
million tones of oil per annum, the maximum amount is raised to 300, 740,000
SDR.
Effects of CLC and fund convention in ship operation :
1. After the implementation of CLC convention every tanker of 2000 GT and
above has to maintain an insurance or other financial security and obtain a
certificate of CLC for oil pollution damage based on that.
2. CLC convention fixed a upper limit to liability of ship owners in case of oil
pollution from tankers so, ship owners were encouraged to invest in high risk
venture like oil transportation.
3. Both CLC & fund convention ensured adequate compensation is available to
parties who suffer from oil pollution by ships even if the owner is located in a
country for away from the scene of disaster or he may not have sufficient
financial resources to meet all the claims.
4. These conventions encourage government and others to take early and
decisive action in containing or minimizing the adverse effects of oil
pollution, because these conventions ensure adequate compensation. If owner
incase any expenses to prevent of minimize pollution damage, then such
expenses are deductible from his total liability.
IMDG Code :
The IMDG code was developed as a uniform international code for the
transport of dangerous goods in packaged form by sea covering such matters
pas packing, container traffic and stowage with particular reference to the
segregation of in compatible substances. The IMDG code lays down basic
principles; detailed recommendations for individual substances, materials and
articles and a number recommendations for good operational practices
including advice on terminology, packing, labeling, storage, segregation and
handling and energy response action.
The IMDG code was made mandatory from 1st Jan. 2004 by IMO, by
adopting SOLAS chapter VII on 24 May 2002.
This code applies to all ships carrying dangerous goods in packaged form.
Provisions of this code do not apply to ships stores.
Effects of IMDG code in ships operation.
1) In documents relating to the carriage of dangerous goods, a proper shipping
name of this goods shall be used.
2) The transport document prepared by the shipper shall be included a signed
declaration or certificate that the consignment is properly packaged mark,
labelled and in proper condition for carriage.
3) The person responsible for loading a dangerous goods in a container shall
provided a signed container packing certificate stating that cargo has been
properly packed.
4) Ship shall have a detailed storage plan which identify by class and sets out the
location of all dangerous goods onboard.
5) Administration shall issued detailed instruction on emergency response guide
and medical first aid guide relevant to incidents involving dangerous goods.