Freight News, Logistics, Sea

BIMCO Adopts Contract Framework for Retrofits

[ October 9, 2026   //   Gary Burrows ]

BIMCO has adopted a new contractual framework designed to encourage investment in energy-saving technologies by addressing how shipowners and charterers share the costs and benefits of vessel retrofits.

The Energy Saving Device Retrofit Addendum 2026 provides a mechanism for negotiating the allocation of equipment and installation costs, vessel downtime and fuel savings when retrofits are undertaken during a time charter.

The addendum addresses a longstanding commercial obstacle to improving vessel efficiency: Shipowners typically finance equipment installations, while charterers may receive much of the benefit through reduced fuel consumption.

“Energy-saving technologies have become increasingly sophisticated, but investments in retrofit projects have been complicated by a misalignment of commercial interests between owners and charterers,” said Stinne Taiger Ivø, BIMCO’s deputy secretary general and director of contractual affairs.

Rather than prescribing a standard cost-sharing arrangement, the addendum allows owners and charterers to negotiate terms appropriate to individual projects.

The technology-neutral framework accommodates existing and emerging energy-saving devices and includes provisions addressing current and future environmental regulatory schemes.

Nicholas Fell, chairperson of BIMCO’s Documentary Committee, said the objective is to provide a practical tool to unlock retrofit investment as the shipping industry faces increasing pressure to reduce emissions and improve fuel efficiency.

Tags: BIMCO