New BIMCO Biofuel Clause for Time Charter Parties 2026

In response to the industry’s growing focus on alternative fuels, BIMCO has recently published its new biofuels clause for time charterparties.

The clause regulates the respective rights and obligations of Owners and Charterers where Charterers wish to supply biofuels to the vessel. It permits Charterers to supply biofuels that meet pre-agreed specifications, whilst including safeguards intended to protect the Owners. 

Charterers are responsible for the time and cost of any tank cleaning required to enable the vessel to receive the biofuels. The clause also provides a 90-day backstop within which the biofuels must be consumed.

Recognizing that the use of biofuels may affect a vessel’s performance, the clause adjusts the applicable speed and performance warranties while the vessel is burning biofuels.

The clause has various sections where figures need to be inserted, failing which a default value will be applied and sub-clause (l) which provides for Owners to take over any biofuels ROB on redelivery is an optional provision which must be completed to be invoked.  

Members should carefully review the clause, both from a technical perspective – taking into account the particular characteristics and requirements of the vessel - and in the context of the charterparty as a whole.  

The clause can be downloaded here from BIMCO.