BIMCO has published its new 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.
