Progress on a Biofuels Clause for the Time Charter Party
We have made significant progress in developing Biofuels Clauses for Time Charter Parties – an important step in supporting the industry’s transition to low-carbon fuels. Originally scheduled for adoption and publication in late 2025, the timetable has been revised to early spring 2026 to allow for thorough consideration of safety, technical requirements, and extensive input from the BIMCO Documentary Committee and broader industry consultation groups.
The new target date reflects BIMCO’s commitment to develop clauses supporting the safe and sound use of biofuels under time lease agreements. The focus of this sub-committee is on clear responsibilities, specifications and procedures for supply and use, thereby enabling owners and tenants to manage risks while achieving decarbonization objectives.
One area under consideration is the definition of “biofuel”, including recognized standards for specifications and blends, while providing flexibility for alternative arrangements to be tested and approved.
Fuel quality and suitability are also a focus of discussion. This clause is expected to meet the requirements for stability and compatibility with ship engines, as well as procedures for handling fuel that does not meet the requirements, including corrective action.
Preparation for biofuel use is another important aspect, including considerations around tank cleaning and crew competency. Separation of different grades or batches, and rules for manufacturing or additional materials, are also part of this work.
Commercial and performance implications are being reviewed, such as how speed and consumption guarantees can be adjusted to reflect the lower calorific value of biofuels compared to conventional fuels.
Finally, practical elements such as notice periods, consumption schedules and handling of remaining fuel upon return delivery are being discussed to provide clarity and minimize disputes.
By addressing these issues, this clause aims to create a balanced framework that supports decarbonization while managing operational and contractual risks.
Source: BIMCO
