BIMCO: Biofuel Clause for Time Charter Parties timeline revised to early spring 2026

International shipping association BIMCO on Wednesday (26 November) said it has made significant progress on developing a Biofuel Clause for Time Charter Parties – a key step in supporting the industry’s transition to low-carbon fuels. 

Originally scheduled for adoption and publication by the end of 2025, the timeline has been revised to early spring 2026 to allow for thorough consideration of safety, technical requirements, and extensive feedback from the BIMCO Documentary Committee and wider industry consultation group.

“The new target date reflects BIMCO’s commitment to develop a clause that supports safe and sound use of biofuel under time charter parties. The subcommittee’s focus is on clear responsibilities, specifications and procedures for supply and use, enabling owners and charterers to manage risks while advancing decarbonisation goals,” BIMCO said on its website. 

BIMCO added one area under consideration is the definition of what constitutes “biofuel”, including recognised standards for specifications and blends, while allowing flexibility for alternative arrangements subject to testing and approval.

“Fuel quality and suitability are also central to the discussions. The clause is expected to address requirements for stability and compatibility with the vessel engines, as well as procedures for dealing with non-compliant fuel, including corrective measures,” it said. 

Preparations for biofuel use are another important aspect, including considerations around tank cleaning and crew competence. Segregation of different grades or batches, and rules for comingling or additives, are also part of the work.

Commercial and performance implications are being reviewed, such as how speed and consumption warranties might be adjusted to reflect the lower calorific value of biofuels compared to conventional fuels.

“Finally, practical elements like notice periods, timelines for consumption and handling of remaining fuel at redelivery are under discussion to provide clarity and minimise disputes,” the association added.

“By addressing these areas, the clause aims to create a balanced framework that supports decarbonisation while managing operational and contractual risks.”

Related: BIMCO invites feedback while drafting new Biofuels Clause for Time Charter Parties
Related: BIMCO subcommittee launched to develop bio bunker fuel clause for time charters

Photo credit: BIMCO
Published: 27 November, 2025