Conventions entry into force expected in the near future
The Standard P&I Club in its latest Standard Bulletin covers the latest news on the adoption of Nairobi Wreck Removal Convention. The Nairobi International Convention on the Removal of Wrecks 2007 which is due to come into force 12 months following the date on which 10 states have ratified it. To date, eight states have ratified the Convention, but more may do so soon. It is therefore expected that it will be in force in the near future.
Application of the Convention
The Convention gives state parties the power to take measures to
remove wrecks located within their Exclusive Economic Zones (12 – 200 nm from the coastal baseline) that pose a hazard to navigation or that may reasonably be expected to result in harmful consequences to the marine environment or damage to the coastline or other coastal interests (e.g. fisheries, tourism and offshore infrastructure). State parties can opt to apply the Convention to wrecks located within their territorial waters
(0 – 12 nm from the coastal baseline) in addition to their EEZ if they wish.
In determining whether a wreck poses such a hazard under the Convention, a state party can take into account various criteria such as the tidal range,
currents and submarine topography in the area, the nature of the cargo on board, and the acoustic and magnetic profiles of the wreck.
If a state party determines that a wreck located within its EEZ does constitute a hazard pursuant to the Convention, then the registered owner of the ship is required to remove it. Strict liability attaches to the registered owner for the costs of locating, marking and removing the wreck, subject to certain narrow exceptions such as where the wreck results from an act of war or where the wreck is wholly caused by an act or omission by a third party with intent to cause damage.
Compulsory insurance
The registered owner of a ship with a gross tonnage in excess of 300 gt is required to maintain insurance or other financial security in a maximum amount equal to the limits prescribed by the Convention on Limitation of Liability for Maritime Claims 1976 as amended. Ships are to be issued with a certificate by the ship’s flag state confirming that such insurance or other financial security is in place. Once the Convention is in force, the club will be in a position to issue certificates evidencing that sufficient insurance is in place in compliance with the Convention. The P&I Club’s rules will be amended to reflect this.
Implications
As it applies to wrecks located in a state party’s EEZ, and given the
wide-ranging criteria that states can rely upon in deciding to have a wreck removed, the Convention may provide contracting states with a legal basis to order removal of wrecks located in very deep water. The wide-ranging
criteria that states can rely upon to order a wreck removal and the enhanced technical challenges involved in removing wrecks in deep water may result in an increase in the number and value of wreck removal claims.
The Standard P&I Club includes a Notice of a proposed amendment to the Club’s rules.
Source: Standard P&I Club
