Does anyone know who will be accountable for the cleaning up and the economic effects along the shoreline? How are the tankers insured and stuff like that.
Tankships on remunerative passage, at the imperative of the parties in the venture (owners, operators, shippers, charterers, consignees, bill-of-lading holders, their agents or their surveyors) routinely carry insurance against inter alia third party claims for pollution damage. Such insurances are usually placed on London. Under adequate private international maritime law damaged parties can pursue meritorious claims in the civil courts.
The prevailing doctrine is that the polluter pays but in this present case (as I understand it) the damaged jurisdiction went against the expert advice of the salvors in denying the distressed vessel a port of refuge and subsequently expelling her from their jurisdiction. Therefore, the insurers can now plead that due and well-advised damage limitation was not practised and that their liability should be limited to that damage which would have been incurred had the available expert advice been followed.
It should therefore resolve into an apportionment of liability between the insurers and the government of Spain and/or the province of Galicia. The apportionment would be the subject of arbitration, negotiation or litigation in an international court acceptable to the parties – in practise such cases usually end up in London or New York.
Oil pollution can be the subject of General Average between the parties to the venture but only to the extent that allowable expenses in General Average are limited to those expenses incurred in avoiding or minimising pollution or damage to the environment.
Otherwise, there are public international remedies. The International Convention for the Prevention of Pollution from Ships as amended (usually referred to as MARPOL 73/78) may be invoked. The Civil Liability Conventions 1969 and 1992 impose strict but limited liability for oil pollution. Where the sums recoverable thereunder prove inadequate there are further provisions under the IOPC Compensation Fund established under the 1971 and 1992 Fund Conventions. This fund is financed by levies on the receivers of oil cargoes.
The foregoing does not purport to be a complete or definitive exposition of the relevant law.
Noel