BIMCO to Develop New Clause Addressing Biofuel Use in Charter Agreements

by Ship & Bunker News Team
Friday June 6, 2025

Shipping industry body BIMCO has announced plans to develop a new biofuel clause for time charter parties to address the growing legal and operational challenges of integrating biofuels in shipping contracts.

With regulations such as the EU ETS, FuelEU Maritime already in place and the forthcoming IMO Net-Zero Framework, biofuels are emerging as a viable option to reduce emissions, it said in a statement on its website on Wednesday.

However, their use raises complex issues around fuel quality, engine compatibility, liability and contractual obligations.

To tackle these challenges, BIMCO has formed a subcommittee comprising shipowners, charterers, P&I experts, and technical specialists.

The group first convened on April 7, 2025, to begin outlining standards for biofuel supply, handling and performance requirements. The clause will also address practical concerns such as fuel blending, onboard storage and the impact on speed and consumption warranties.

A draft version of the clause is expected to be presented at BIMCO's Documentary Committee meeting in October 2025. To ensure broad industry input, BIMCO will establish a sounding board of stakeholders to review and comment on the draft as it develops.

This initiative aims to provide a clear, flexible contractual framework that supports maritime decarbonisation while maintaining vessel reliability and legal certainty for owners and charterers alike.

Ship & Bunker News Team
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