On June 23, 2018, the tanker “Bow Jubail” collided with the quay of LBC Tank Terminals in Rotterdam. This led to a spill of over 217 tons of fuel oil into the Port of Rotterdam. As a result, 150 claimants, including several insured by the NNPC, held the owner liable.
The owner, NCC, filed a request with the Rotterdam District Court to limit its liability in accordance with the Convention on Limitation of Liability for Maritime Claims (LLMC) of November 19, 1976. The liability limit under the LLMC is significantly lower than that of the International Convention on Civil Liability for Oil Pollution Damage (CLC 1992). The difference amounts to 1,679,292 SDR, or Euro 2.056.657,34.
However, the court rejected NCC’s request. The appeal to the Court of Appeal in The Hague was recently also dismissed. The court ruled in favor of the creditors, stating that the CLC, not the LLMC, applies to the bunker oil pollution. This decision was advantageous for the creditors, as the limit is considerably higher and because they could also invoke the “International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage.” This fund, the International Oil Pollution Compensation (IOPC) Fund, covers the difference between the claims and the LLMC limit up to a certain maximum. Thanks to these additional resources, it appears that most of the claimants’ demands in this case are largely covered.
For ships with a gross tonnage of up to 29,548 GT, as in the case of the “Bow Jubail,” the IOPC compensates the difference with the CLC, up to a maximum of 20 million SDR. In the case of the “Bow Jubail,” the CLC limit is SDR 15,991,676, which means that STOPIA will need to provide an additional compensation of SDR 4,008,324, or Euro 4.909.062,26.
As a result of these rulings, it is expected that most creditors will be fully or largely compensated. Although the case ultimately took more than six years, it is a unique case in the Netherlands concerning the application of the CLC and Fund Conventions.
