BIMCO has launched a new Biofuel Clause for Time Charter Parties 2026 that gives owners and charterers a standard framework for using biofuels during a charter, according to BIMCO.
The clause, published on 25 June 2026, is aimed at one of the sharper contractual problems emerging from shipping’s shift to lower-carbon fuels: who carries the risk when biofuel is supplied, stored, tested or consumed on board. It gives charterers the right to supply biofuel to a vessel if the fuel meets the standards set out in the clause.
Charterers may seek to supply biofuels outside those standards, but only with owners’ prior written consent. Owners may require independent testing before giving approval, with charterers bearing the cost.
The fuel must meet recognised international standards, including relevant ISO specifications and any additional requirements agreed in the charter party.
The clause also limits the bio-based content in the blend to an agreed percentage. Where the bio-component is FAME or HVO, it must meet standards such as EN14214, ASTM D6751 or EN15940, subject to specified exceptions.
BIMCO’s clause requires biofuel to be stable, homogeneous and suitable for the vessel’s engines and auxiliaries. Owners warrant that the vessel is properly fitted, equipped and approved to use the permitted biofuels, and that the crew is trained to handle them safely. Different fuel types, grades and batches must be segregated in separate tanks, with comingling allowed only by prior agreement.
Charterers are liable for loss, damage, delay or costs arising from breaches of the fuel quality and suitability requirements, including vessel damage, operational delays and removal of unsuitable fuel, unless the issue is caused by owners’ fault. Tank cleaning needed to facilitate biofuel use is also for charterers’ account where reasonably necessary.
The clause recognises that biofuels can differ from conventional marine fuels in energy content and combustion characteristics, potentially affecting speed, fuel consumption and vessel performance. It allows speed and performance warranties or consumption calculations to be adjusted using agreed percentage factors or a formula based on the lower calorific value of the biofuel compared with conventional fuel.
Owners must provide supporting calculations. If biofuel is not consumed within an agreed period, owners may require testing at charterers’ cost. If the fuel remains compliant, it must be used within a further agreed period, with a default of 30 days. If it is non-compliant, charterers are liable for resulting loss, damage and associated costs, including off-loading, unless the delay was due to owners’ fault.
Charterers must give reasonable written advance notice of plans to supply biofuel, including its specification, quantity and intended use, and at least 72 hours’ notice with instructions for the start of consumption.
Owners must keep charterers informed of biofuel quantities remaining on board. Charterers must provide supplier documentation, including the fuel’s lower calorific value, while either party may request independent laboratory testing, with costs shared equally.
The clause may still require negotiation when incorporated into a charter party, including completion of optional sections and figures, and assessment of how it interacts with existing charter terms and operational practice.
BIMCO is an international association for the shipping industry whose work includes the development of standard contracts, clauses and practical guidance used by shipowners, charterers, brokers and other maritime counterparties.