We have published CO2TIME 2026, a new time charter party developed specifically for the maritime transport of liquefied carbon dioxide (LCO₂). The form responds to the rapid development of carbon capture, utilisation and storage (CCUS) projects and the growing need for a standardised contractual framework tailored to CO₂ shipping.
CO2TIME 2026 is the first charter party designed expressly for the carriage of liquefied carbon dioxide. While firmly focused on the emerging CO₂ trade, the form has been drafted with sufficient flexibility to allow its use for other liquefied gases, such as LPG, where this is technically and contractually agreed.
The contract was developed by a BIMCO drafting subcommittee with experience from across the industry, including owners, charterers, technical experts, insurers and legal advisers. Chaired by Marcus Dodds of Capital Gas, the subcommittee comprised John Reay (Navigator Gas), Jocelyn Harriman (Ineos), Marceli Marczyński (Orlen Trading), Martin Halcrow (Babcock), Tommy Baggio and Elwin Taylor (Independent / former Clarksons), Andreas Fjærvoll‑Larsen (Wikborg Rein), Krester K. Kjær and Peter Hazell (Skuld), Karolina Mentz (UK Club), and Mark Rudd (who was UK Club at the time). This breadth of expertise has been central to ensuring that CO2TIME 2026 is technically robust, commercially balanced and aligned with established industry practice, while addressing the specific characteristics of CO₂ transport.
As part of the drafting process, the subcommittee also conducted a wider industry consultation through a sounding board, allowing a broad cross‑section of stakeholders to review and comment on the developing draft. This consultation tested the contract across a range of operational and commercial scenarios and helped shape a form that reflects the realities and expectations of the wider industry as this emerging trade continues to evolve.
A key objective for the drafting subcommittee was to build on familiar concepts from the gas tanker sector. By retaining well‑established time charter principles and tailoring them to the specific characteristics of CO₂ transport, CO2TIME 2026 aims to reduce contractual uncertainty and promote confidence among owners, charterers, financiers and project developers entering this market.
“CO₂ transport is still an emerging trade, but it is firmly rooted in established gas shipping practice. CO2TIME 2026 brings these together by offering a familiar time charter structure adapted to the specific technical, operational and regulatory requirements of CO₂ transport,” says Marcus Dodds of Capital Gas, Chairperson of the CO2TIME 2026 drafting subcommittee.
Central to the structure of CO2TIME 2026 is a vessel-specific “Technical Annex”. The annex plays a pivotal role in defining the vessel’s cargo containment system, operating parameters, permitted cargoes and operational limitations. Many of the charter party’s risk allocation mechanisms rely directly on these technical descriptions, underlining the importance of accuracy and clarity when completing the “Technical Annex” to be attached to the charter party.
The charter party includes a range of provisions reflecting the operational realities of CO₂ transport. These include bespoke clauses addressing venting, vapour return, cargo conditioning, tank preparation and in‑transit loss, reflecting both the physical characteristics of CO₂ and the operational interface between vessels and shore or offshore installations. Liability and cost are allocated by reference to the party controlling the relevant operational decision, providing a clear and practical framework for day‑to‑day operations.
Environmental regulation and its impact on CO₂ transport form an integral part of the contract. CO2TIME 2026 includes a dedicated “Cargo Emissions Clause” that distinguishes between emissions arising from the cargo itself and emissions resulting from vessel propulsion and operation. This approach provides contractual clarity alongside existing regulatory regimes, including the EU Emissions Trading System, while maintaining flexibility to adapt to future regulatory developments.
To reflect modern operating practice, CO2TIME 2026 adopts a performance regime based on representative assessment periods rather than isolated voyages. Speed and fuel consumption warranties are assessed over consecutive periods, with balancing mechanisms to account for both underperformance and savings. Optional provisions allow for performance assessment of newbuildings and reassessment following drydocking, enhancing transparency and reducing the risk of early disputes.
The form also addresses the challenges of trading within an evolving terminal infrastructure. Detailed compatibility provisions allocate cost, time and risk where terminal requirements change or where the vessel is ordered to terminals outside the agreed compatibility parameters. This framework recognises that CO₂ transport chains are likely to develop progressively as projects mature and infrastructure expands.
Overall, CO2TIME 2026 is intended to serve as a robust and adaptable contractual framework for an emerging trade. By drawing on established time charter concepts and integrating CO₂‑specific provisions, the form aims provides a clear and workable framework to support the safe, efficient and commercially viable transport of liquefied CO₂, while retaining flexibility to accommodate future technological, regulatory and market developments.
For further guidance or questions about the CO2TIME 2026, please contact contracts@bimco.org.
