The International Oil Pollution Compensation (IOPC) Funds opened its latest session in London with several important discussions about maritime safety and global compensation rules. Delegates reviewed new risks, ongoing regulatory work, and future changes that could shape how the industry manages oil pollution liability.
Parallel Fleet Risks Take Center Stage
Delegations raised strong concerns about the growing use of parallel fleet ships. These vessels often operate without proper insurance and outside normal safety rules. Because of this, they create financial and operational risks for the entire compensation system.
Many states shared how they now strengthen sanctions enforcement and registry oversight. As a result, more governments are pushing for transparency and coordinated international action to reduce these risks.
New Guidance Defines When a Vessel Remains a “Ship” Under the CLC
The Assembly approved new guidance on when a vessel qualifies as a “ship” under the 1992 Civil Liability Convention. This decision followed questions about tankers designed to carry both persistent oil and chemical cargoes.
Under the new rule, operators must remove any persistent oil residues that still pose a pollution risk. They must also follow the tank-cleaning standards listed in Annex I, Chapter 4 of MARPOL. This clearer definition helps states determine liability more consistently and supports stronger accountability across the industry.
HNS Convention Moves Closer to Activation
Delegations also reviewed progress on the 2010 HNS Convention. By late August 2025, eight states had already completed ratification. Several more are preparing to join soon, which will trigger the convention’s entry into force.
Once the convention activates, ships carrying hazardous and noxious substances must hold compulsory insurance certificates. This change may bring new administrative work for states and industry. Even so, many organisations support the convention because it expands protection and strengthens global compensation rules.
A Sector Preparing for Stricter Standards
These outcomes show how international bodies continue to tighten rules around maritime safety, global shipping compliance, and marine pollution liability. More states now support common standards, and they increasingly work together to manage new risks.
With rising concerns about parallel fleet activity and the coming HNS framework, the industry is moving toward clearer rules and stronger cooperation.
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Source: IOPC Funds
