BIMCO has published a Biofuel Clause for Time Charter Parties 2026 that places fuel-quality obligations and liability rules into a standard contract framework for owners and charterers using biofuels, according to BIMCO.
The clause covers bio-based fuels, bio-distillate marine fuels and bio-residual marine fuels, with specifications aligned with ISO 8217:2024 and ISO 8217:2017. It also includes provisions for FAME and HVO components where relevant.
The text targets legal and operational issues around fuel quality, engine compatibility, sampling, testing, storage, handling and liability under time charter agreements.
Charterers must give owners written notice of their intention to supply biofuel, including the intended specification, grade, blend and quantity. They must also issue written instructions no later than 72 hours before the vessel is due to start consuming the fuel.
The clause makes charterers liable for loss or damage suffered by owners or the vessel where non-compliant biofuel causes the problem. Owners must ensure the vessel is properly fitted and equipped to consume permitted biofuel and that the crew has the competence and training required for safe handling.
“The Biofuel Clause for Time Charterparties will support the industry’s transition to low-carbon fuels. The clause is the product of thorough consideration of safety and technical requirements following extensive consultation with shipowners, charterers, fuel experts, and P&I clubs,” said Stinne Taiger Ivø, BIMCO’s deputy secretary general and director of contracts.
Nicholas Fell, chair of BIMCO’s Documentary Committee, said the clause provides “a clear framework for the safe use of biofuel” and includes “definitions, specification standards and the respective obligations of owners and charterers when biofuels are supplied and consumed.”
The clause includes a mechanism for adjusting speed and consumption warranties where biofuels have a different lower calorific value from the conventional reference fuel used in the charter party. It also requires different biofuel grades, specifications and batches to be segregated within the vessel’s natural segregation.
Parties may agree a consumption period for biofuel. If no period is inserted, the default period is 90 days from supply. If testing later confirms the fuel remains suitable, the default further consumption period is 30 days.
BIMCO is a non-profit international shipping association founded in 1905. It develops standard contracts and clauses, works on regulatory matters and provides training, market information and contractual tools through offices including Copenhagen, Athens, Brussels, Houston, London, Shanghai and Singapore.