The limitation fund established following the grounding of the Full City near Langesund in 2009 was recently distributed. The limitation fund proceedings, which ran parallel to the proceedings concerning the limitation fund established following the Server casualty in 2007, have helped to clarify several procedural aspects of limitation funds. This article examines the key takeaways from the limitation fund proceedings now that they have come to an end.
The regulatory framework that exists within the shipping and offshore industries is long established. The general principle is that maritime assets above a certain size must be registered in a national ship registry, and vessel registration plays an important role in the financing of maritime and offshore assets. While the existing framework effectively extends to the offshore floating wind sector in Norway, the same cannot be said for deep-water fish farms.
In a recent administrative appeal decision, the Norwegian Coastal Administration (NCA) Head Office reversed the wreck removal order issued by the NCA Emergency Response Centre in respect of a cargo ship which sank in northern Norway in 2017. The decision confirms that the pollution authorities will consider the proportionality of the measures ordered when exercising their administrative discretion.
The 75th session of the International Maritime Organisation Marine Environment Protection Committee recently approved a ban on the use and carriage of so-called 'heavy fuel oil' in the Arctic. The proposed amendments are expected to be formally adopted in June 2021. However, more stringent standards have already been proposed by the Norwegian government for the area surrounding Svalbard.
As noted in the white paper on Norway's Arctic policy, maritime activities in the High North are expected to increase due to improved accessibility resulting from melting sea ice, the high potential for increased commercial exploitation of marine and offshore resources and the successful marketing of the Arctic as a tourist destination. With increased activities comes an increased risk of accidents, and these additional risks must be taken into account by those operating in the area.