BIMCO has initiated a new subcommittee dedicated to formulating a Biofuel Clause for Time Charter Parties. This initiative addresses the legal and operational challenges brought on by the increasing adoption of biofuels in the shipping industry. As regulations such as the EU ETS, FuelEU Maritime, and the future IMO Net-zero Framework influence fuel strategies, biofuels are emerging as viable solutions for emissions reduction. However, incorporating biofuels into charter agreements involves complexities related to fuel quality, engine compatibility, and liability concerns.
The inaugural meeting of the subcommittee took place on April 7, 2025, and includes representatives from shipowners, charterers, P&I clubs, and technical experts. The group will concentrate on identifying the scope and standards for biofuels, clarifying supply and handling methods, and ensuring alignment with performance expectations and regulatory requirements. Additionally, the clause will address practical aspects of biofuel utilization, such as blending with conventional fuels, storage on board, and impacts on speed and consumption warranties. By tackling these matters, BIMCO aims to create a robust yet adaptable contractual framework that ensures compliance while maintaining vessel reliability.
A draft of the new clause is anticipated to be presented at the BIMCO Documentary Committee meeting in October 2025. Upon adoption, it will provide essential clarity for charterers and owners as they transition toward low-carbon operations. To ensure the clause meets the broader maritime community’s needs, BIMCO plans to create a sounding board of industry stakeholders. This group will offer feedback on the draft clause during its development, incorporating diverse insights from across the sector.
Stakeholders interested in participating are encouraged to reach out to BIMCO directly. BIMCO remains dedicated to establishing practical, standardized solutions that adapt to regulatory changes and support the industry’s decarbonization goals.