BIMCO Publishes New Biofuel Clause for Time Charter Parties 2026

In support of the shipping industry’s efforts to meet decarbonisation targets, including through the use of biofuels as part of the energy mix, BIMCO has published its new Biofuel Clause for Time Charter Parties 2026. The clause provides Owners and Charterers with a contractual framework that allocates responsibilities and costs relating to the supply and consumption of biofuels during a time charter.

The clause addresses a number of commercial and operational issues, including:

• Specifying that biofuels must meet recognised biofuel standards, unless otherwise agreed in advance;

• Requiring Charterers to provide Owners with advance notice of an intended biofuel supply;

• Requiring Owners to ensure that the vessel is technically ready and that the crew can safely handle the fuel; 

• Extending fuel sampling and testing provisions to biofuels;

• Providing for adjustments to speed and consumption warranties where biofuels have lower calorific values;

• Introducing time limits for the storage and consumption of biofuels, which may have a shorter shelf life; and 

• Providing for the removal of any fuel remaining on board (ROB) upon redelivery.

Whilst the clause can be used as drafted, Members and Assureds using biofuels are encouraged to review their requirements and to amend the clause as necessary to ensure that it reflects their specific operational needs and desired allocation of risk and liability. 

The BIMCO clause and commentary are available here.

Please contact your usual club contact for further assistance.