BIMCO has adopted a Biofuel Clause for Time Charter Parties, providing a contractual framework to address legal and operational questions arising from the growing use of biofuels in shipping.

The clause, developed following consultation with shipowners, charterers, fuel experts and protection and indemnity (P&I) clubs, sets out clear definitions, fuel specifications aligned with ISO standards, and a structured process for the sampling, testing, storage and handling of biofuels on board vessels.

Stinne Taiger Ivø, Deputy Secretary General and Director of Contracts at BIMCO, commented: “The Biofuel Clause for Time Charter Parties will support the industry’s transition to low-carbon fuels. 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 clause also includes mechanisms for performance adjustments when fuels with different calorific values are used, and provides for the fair adjustment of existing speed and consumption warranties under the charter party. Provisions addressing fuel stability, the segregation of batches and storage life are also included, reflecting what BIMCO describes as operational best practices for the safe use of biofuels.

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

The adoption of the biofuel clause forms part of a broader programme of work by BIMCO to develop contractual solutions for alternative fuels. The organisation has previously published an LNG annex to the BIMCO Bunker Terms 2018, along with additional clauses for LNG fuel supply in charter parties. A methanol annex to the BIMCO Bunker Terms 2018 and a separate annex addressing methanol bunkering have also been adopted. According to BIMCO, work on a corresponding annex for ammonia is expected to begin this year.