BIMCO’s dedicated subcommittee is making strong progress on the development of a new Biofuels Clause for Time Charter Parties, a key initiative aimed at supporting the maritime industry’s transition to low-carbon fuels. The clause is being crafted to provide a robust contractual framework for the use of biofuels, addressing both technical and legal considerations in line with international standards and regulatory developments.
The subcommittee, which includes representatives from shipowners, charterers, bunker suppliers, and P&I clubs, has convened multiple times and is making good progress. Recent meetings have focused on critical issues such as fuel specifications, sustainability certification, consumption warranties, and the interplay with existing speed and consumption clauses.
Discussions have also addressed practical concerns around biofuel storage, sampling, and testing, with recommendations to limit onboard storage. The subcommittee is working to ensure the clause remains adaptable to various biofuel types and blends, including those exceeding 30% concentration, which may trigger additional regulatory requirements.
The drafting process is now at a stage where we invite the broader industry to give feedback through a sounding board. This will allow stakeholders across the sector to review and comment on the draft clause before its finalisation.
Are you interested in joining the sounding board? BIMCO welcomes industry professionals who wish to contribute to the clause’s development to join the sounding board. To get involved, please reach out to Vasileios Patonis or Carl Lindahl.
