New chapter 10a in the NMC
The new Chapter 10a in the NMC applies to ships and wrecks located in Norwegian territorial waters and the Norwegian Economic Zone. Under the convention and Chapter 10a of the NMC, a "wreck" is defined as a ship and/or related objects that due to a maritime casualty have either stranded, sunk, or been found adrift. In addition, the definition also comprises scenarios where the ship is in the process of or is reasonably expected to sink or be stranded due to a maritime casualty, if no effective measures are taken to assist the ship.
It is the master or operator of a ship that is required to report the maritime casualty, whereas it is the maritime authority who shall ensure that all reasonable steps are taken to locate and mark the wreck. If the Norwegian maritime authority determines that a wreck poses a "hazard" [1], the registered owner is required to remove the wreck. Costs related to locating, marking and removing a wreck considered hazardous due to a maritime casualty, shall be covered by the registered owner, regardless of fault. However, the registered owner is entitled to limit its liability in accordance with NMC Chapter 9.
Any claims made under the new Chapter are time barred three years after the state concluded that the wreck was hazardous and, in any event, no more than six years after the marine casualty, in contrast to claims under the Pollution Act which has a five-year time bar.
With Norway's accession to the Nairobi convention and the new Chapter 10a in the NMC, a dual system for wreck removal under Norwegian law applies, with the possibility for the state at their discretion to demand wreck removal under the new Chapter, or the existing regulations in the Norwegian Pollution Act and/or Harbour and Waterways Act.
Insurance Requirement and Wreck removal Certificate
The registered owner of a ship (whether Norwegian or foreign flagged) with a gross tonnage of 300 or above is required to maintain insurance or other financial security to cover the wreck removal liability when making calls to Norwegian ports and offshore installations.
Failure to comply with the insurance and WRC requirements by 11 February 2025 may result in sanctions, including that the Norwegian Maritime Authority may refuse the ship entry or departure from a Norwegian port or other place of discharge on the Norwegian continental shelf. Further, a Norwegian flagged ship, without a valid WRC is not allowed to sail under the Norwegian flag (NOR or NIS).
The required insurance cover refers to the limitation of liability provision in NMC Section 175 no. 3. Any claim for cost arising under the new Chapter 10a may be brought directly against the insurer. Such right to direct action does not exist under the current legislation, except for in cases of insolvency by the shipowner. In case of a direct action under the new Chapter 10a, the insurer may invoke the same defences that the registered owner would have been entitled to invoke. In addition, the insurer is entitled to limit its liability to the amount stipulated by NMC Section 175 no. 3, despite the registered owner still being subject to the higher liability limits in NMC Section 175a.
Selmer's shipping team remains available to assist if you have questions regarding the Nairobi Convention or its accession into Norwegian law.
[1] The convention establishes that hazard means any condition or threat that "(i) poses a danger or impediment to navigation, or (ii) may reasonable be expected to result in major harmful consequence to the marine environment or damage to the coastline or related interest of one or more States".