Ship Oil Pollution Compensation Legal System

China has seen its oil importation soaring since 1993 when it turned into an oilimporting country from an exporting country. In 2000, China's oil import volumejumped to the third place in the world next only to the United States and Japan. It ispredicted that by the year 2010 China's oil demand will be somewhere between 300million and 350 million tons, 170 tons of which will have to be imported. At present90% of China's imported oil is transported by ship. The ever-growing oil importationhas put China at risk of increasing accidents of serious oil spilling pollution. Statisticsshow that over the ten years from 1994 to 2003 there were more than 30 cases of oilescaping or discharging with over 50 tons of oil spilled each time in China's coastalwaters. Serious damage to the surrounding ecological environment ensued. Thereforeit has become our top priority to work out China's compensation mechanism for thedamage caused by ship oil pollution to protect marine environment and thegovernment has attached great importance to it.The 2005 Shanghai International Forum on Maritime Affairs was held to discuss thesubject of establishing a compensation system for damage of ship oil pollution in lightof China's national conditions. Moreover, the Administrative Regulations for theCollection and Utilization of Compensation Fund for Ship Oil Pollution Damage,jointly drafted by China' Finance Ministry and Communications Ministry, is currentlyundergoing the approval procedure of the government. However China's laws on shipoil pollution responsibility is for from complete and the insurance market is notmature, so it will be a long process to set up a complete compensation system for shipoil pollution damage.The international compensation system in this regard currently in place has beenproved reasonable and effective. This thesis will begin by interpreting theinternational compensation system for ship oil pollution, examining China's currentsituation of ship oil pollution damage and related laws on compensation for suchdamage. Then a strong argument will be made for the necessity of establishing acompensation system for ship oil pollution damage in China. In conclusion, somesuggestions will be given on the establishment and improvement of China'scompensation system for ship oil pollution damage.