BIMCO has adopted a new Biofuel Clause for Time Charter Parties, providing a contractual framework to address operational and legal issues associated with the growing use of biofuels in shipping.
The clause is designed to help shipowners and charterers manage challenges linked to fuel quality, engine compatibility, vessel performance and liability as the industry increasingly turns to low-carbon fuels to meet decarbonisation targets.
According to BIMCO, the clause includes agreed fuel specifications aligned with ISO standards and sets out procedures covering fuel sampling, testing, storage and handling.
It also contains provisions for adjusting vessel performance calculations when fuels with different calorific values are used, while maintaining a fair approach to existing speed and consumption warranties.
The clause further addresses operational considerations such as fuel stability, segregation of fuel batches and storage life.
Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO, said the clause was developed following consultations with shipowners, charterers, fuel specialists and P&I clubs.
“The Biofuel Clause for Time Charter Parties will support the industry’s transition to low-carbon fuels,” Ivø said.
Nicholas Fell, Chair of BIMCO’s Documentary Committee, said the clause provides a clear framework setting out the obligations of owners and charterers when biofuels are supplied and consumed.
The publication follows BIMCO’s earlier work on contractual arrangements for alternative fuels, including LNG-related bunker terms and charter party clauses, as well as a methanol annex to its bunker terms. BIMCO said work on an ammonia annex is expected to begin this year.
