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BIMCO Adopts Biofuel Time Charter Clause

[ June 12, 2026   //   ]

BIMCO has adopted a new Biofuel Clause for Time Charter Parties aimed at addressing legal, technical and operational issues associated with the growing use of low-carbon fuels in shipping.

The clause establishes a contractual framework governing the supply and use of biofuels under time charter agreements, including fuel specifications aligned with ISO standards and procedures for sampling, testing, storage and handling.

“The Biofuel Clause for Time Charter Parties will support the industry’s transition to low-carbon fuels,” said Stinne Taiger Ivø, deputy secretary general and director of contracts at BIMCO. “The clause is the product of thorough consideration of safety and technical requirements following extensive consultation with shipowners, charterers, fuel experts and P&I clubs.”

The provision also includes mechanisms to adjust vessel performance calculations when fuels with different calorific values are used and provides for corresponding adjustments to speed and fuel consumption warranties.

BIMCO said the clause addresses operational safeguards related to fuel stability, storage life and segregation of fuel batches, reflecting best practices for the safe use of biofuels onboard vessels.

“The new clause provides a clear framework for the safe use of biofuel,” said Nicholas Fell, chairman of BIMCO’s Documentary Committee. “It includes definitions, specification standards and the respective obligations of owners and charterers when biofuels are supplied and consumed.”

The clause is the latest addition to BIMCO’s suite of alternative fuel contractual tools. The organization previously adopted an LNG Annex to the BIMCO Bunker Terms 2018, along with charter party clauses covering LNG fuel supply. BIMCO has also adopted a methanol bunkering annex and a Methanol Annex to the BIMCO Bunker Terms 2018.

Work on a similar annex covering ammonia fuel is expected to begin later this year.

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