BIMCO adopts biofuel clause for time charter parties
In Denmark, BIMCO has adopted a Biofuel Clause for Time Charter Parties to address legal and operational challenges as the use of low-carbon fuels in shipping increases. As the shipping industry decarbonises, regulatory frameworks reshape companies’ fuel strategies. The integration of biofuels into charter party agreements is complex, however, and often raises questions around fuel quality, engine compatibility and liability.
The clause provides clear definitions, agreed fuel specifications aligned with ISO standards and a structured process for sampling, testing, storage, and handling of biofuels. It also offers mechanisms for performance adjustments when fuels with different calorific values are used and ensures fair adjustment of existing speed and consumption warranties under the charter party. In addition, the clause addresses safeguards connected to fuel stability, segregation of batches and storage life which reflect operational best practices for the safe use of biofuels on board.
Category: Fuels
