BIMCO has adopted a new Biofuel Clause for Time Charter Parties to support the shipping industry’s transition to low-carbon fuels.
The clause addresses legal and operational challenges linked to the growing use of biofuels in shipping.
BIMCO developed the clause following consultations with shipowners, charterers, fuel experts and P&I clubs.
The new framework provides clear guidance on the supply and use of biofuels under charter party agreements.
It includes fuel specifications aligned with ISO standards. It also sets procedures for fuel sampling, testing, storage and handling.
The clause defines the responsibilities of owners and charterers when biofuels are supplied and consumed.
It also addresses fuel quality, engine compatibility and liability concerns.
In addition, the clause introduces mechanisms to adjust vessel performance calculations when fuels with different calorific values are used. It also provides a framework for adjusting speed and consumption warranties.
BIMCO included safeguards covering fuel stability, batch segregation and storage life to support the safe use of biofuels on board.
Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO, said the clause will help the industry adopt low-carbon fuels while addressing safety and technical requirements.
Nicholas Fell, Chair of BIMCO’s Documentary Committee, said the clause provides a clear framework for the safe supply and use of biofuels.
The new clause expands BIMCO’s portfolio of alternative fuel contract solutions.
The organization has already published contractual provisions for LNG and methanol fuel operations. BIMCO also plans to begin work on an ammonia annex later this year.
