In the Netherlands, Offshore Energy reported that shipping association BIMCO has formed a new subcommittee to develop a Biofuel Clause for Time Charter Parties in a bid to address the legal and operational challenges stemming from the growing use of biofuels in shipping.
Since the integration of biofuels into charter agreements is complex, often raising questions around fuel quality, engine compatibility, and liability, BIMCO plans to draft a new clause to address this challenge, according to the report.
The task of the newly formed subcommittee, comprising shipowners, charterers, P&I representatives, and technical experts, is to focus on defining the scope and standards for biofuels, clarifying how they may be supplied and handled, and ensuring that their use aligns with performance expectations and regulatory obligations.
The new clause will also consider the practical realities of biofuel use, such as blending with conventional fuels, onboard storage, and the implications for speed and consumption warranties, with an aim to provide a flexible and robust contractual solution that supports compliance without compromising vessel reliability.
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