“The Second Level”Compensation Mechanism of Ship Oil Pollution Damage Was Of fi cially Launched

Reporter Li Xiaochuan

On Jun. 6thof 2015, China Ship Oil Pollution Damage Compensation Fund Committee was formally founded in Beijing, which marked the of fi cial launch of compensation mechanism of ship oil pollution damage in China. On the same day, China Ship Oil Pollution Damage Compensation Center was inaugurated in Beijing. As the permanent organization that undertakes specific compensation works and relative support works, the center provides relative legal consulting services for all the oil pollution victims that applied for ship oil pollution compensation fund.

In the year of 2003, the “8.5 Chang Yang pollution accident” happened in Shanghai.Bulk currier “Chang Yang” (12107GT) was hit by a small ship “Zhe Chang Xing Huo”(204GT), in which, the oil tank “Chang Yang”was broken and 85 tons of fuel oil leaked into the river, which posed serious pollution threat to the water resources of the nearby rivers and Shanghai citizens. In the end, through the coordination among different parties,China Shipping Freight, the owner of “Chang Yang”ship bore the pollution clean-up cost of 11 million RMB, in consideration of public interests and the good sense of social responsibility of the large stage-owned enterprise.

In order to strengthen fund-using management of Ship Oil Pollution Damage Compensation, the article 56 of the Ship Pollution Prevention Management Regulations of the State Council stipulates that “China Ship Oil Pollution Damage Compensation Fund Committee established by the country is responsible for the process of ship oil pollution damage compensation fund and other affairs”, clarifying the decision-making institution for fund use. On June 18thof this year, China Ship Oil Pollution Damage Compensation Fund Committee was formally founded. China Ship Oil Pollution Damage Compensation Center was also inaugurated.

By Jun. 30thof 2015, China Ship Oil Pollution Damage Compensation Fund Committee has collected a total amount of 329.1141 million RMB. According to a fact-finding statistics of nationwide ship pollution accidents compiled by the compensation center, there are 14 oil pollution accidents that may use the fund for compensation. Among these accidents, 10 accidents are non-main oil pollution accidents, the others are main oil pollution accidents. It is hard to estimate the total amount of the fund. Investigations, it is necessary to conduct investigations, assessments and verifications of oil pollution damage.

The main reason that no accident has formally applied to the fund for compensation is that according to the regulations, the accidents (excluding non-main oil pollution accidents) which intend to apply for fund compensation have to go through judicial process, and the court or arbitration institutions will decide whether the trouble-causing ship owners or insurers have the ability to compensate and whether the reparation exceeds the limit. Up to now, none accident has finished the judicial process. However, victims of the two major ship oil spill accidents that happened in Shanghai and Fujian have clearly indicated that trouble-causing ship owners are of limited compensation liability, and they may not obtain enough compensation. When related judicial processes are fi nished, the victims will apply to the fund for supplement compensation. Two maritime arbitration courts have recorded the cases for arbitration purpose.