China Waterborne Transport Research Institute under the Ministry of Transport and China Transport News recently jointly launched a Methanol Fuel Shipping Supply Chain Innovation Alliance with 20 organisations spanning the shipping, port, energy, equipment, research and industry association sectors.

The alliance was officially announced during the main event of China Maritime Day 2026 on 11 July, where members also released a joint initiative to develop a collaborative methanol-fuelled shipping supply chain.

The alliance aims to implement China’s national strategy for green economic transformation and support the Ministry of Transport’s “One Network, Four Modernisations” initiative by building a safe, efficient, economical and reliable methanol marine fuel supply chain

Under the joint initiative, alliance members pledged to align with China’s national decarbonisation strategy by promoting methanol as a key pathway for the shipping sector’s green transition and optimising the industry’s energy mix.

The members also pledged to strengthen collaboration across the supply chain to improve coordination between bunker fuel production, transportation and end users while advancing technological innovation.

Lastly, the alliance will support the development of policies, planning and technical standards, promote resource sharing and joint research, and accelerate the large-scale adoption of methanol as a marine fuel.

The alliance brings together companies and organisations representing the entire methanol shipping supply chain.

Members include shipping and port members such as China Changjiang National Shipping (Group) Corporation, COSCO Shipping Bulk Co., Ltd., Shandong Port Group, and Wuhan Chuangxin Jianghai Shipping Co., Ltd.

Energy companies in the alliance include Sinopec Chemical Commercial Holding Company Limited and Methanex Corporation.

Marine fuel suppliers including Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai) Co Ltd and Shenzhen Port Energy Development Co Ltd are also part of the alliance. 

Equipment manufacturers in the alliance are CSSC 711th Research Institute, CSSC Power (Group) Corporation Ltd and Chongqing Hongjiang Machinery Co Ltd.

Research, media and industry organisations participating in the alliance include the China Waterborne Transport Research Institute, China Transport News, and the Methanol Institute.

The Methanol Institute said methanol is moving beyond individual projects towards coordinated action across the entire value chain. 

“And China continues to play a leading role in advancing methanol as a marine fuel,” it said in a social media post.  

“We’re proud to work alongside our fellow alliance members to help strengthen the methanol supply chain and support the continued growth of methanol as a marine fuel.”

Photo credit: David Yu from Pixabay
Published: 17 July, 2026

Industry coalition SEA-LNG on Thursday (16 July) published its 2026 Mid-Year Market Review. 

It provides a snapshot of the current market conditions facing the methane pathway, with particular focus on the growth of liquefied biomethane (LBM/bio-LNG). This report comes as SEA-LNG celebrates its tenth anniversary and gains provisional consultative status at the International Maritime Organization (IMO).

According to analysis of vessel orders from January to June 2026 from SEA-LNG member DNV, LNG dual-fuel orders remain robust at 73 vessels, accounting for almost 90% of the alternatively fuelled order book, when compared with ammonia, hydrogen and methanol. Additionally, there are now 67 LNG bunker vessels in operation, plus 42 more on order.

The LNG order book continues to be dominated by vessels serving liner trades especially container vessels and pure car and truck carriers (PCTCs). This is consistent with recent analysis by the World Shipping Council which shows that LNG remains the preferred fuel for container ship owners, accounting for 58% of total tonnage ordered versus conventional fuels at 36%.

There was also an increase in bunkering volumes and infrastructure. According to analysis by Kpler, global LNG bunker volumes were around 770,000 cubic meters (m3) per month in the period January to May 2026. This represents an increase of about 13% on the same period in 2025 as more LNG fuelled vessels have entered into operation together with favourable LNG and conventional fuel prices.

Liquefied biomethane is bunkered routinely today, and liquefied e-methane is in development. Since the introduction of regulations like FuelEU Maritime, LBM supply and demand have grown significantly. Data from the European Biogas Association show biomethane production capacity reached 8.2 bcm a year by the end of Q2 2026. This represents an additional 1 bcm in a single year, or growth of 17%. The number of operational biogas plants rose from 1,678 to 1,975 plants with €36 billion of allocated capital investment driving the sector.

Steve Esau, SEA-LNG COO, said: “Despite geopolitical and regulatory uncertainties in 2026, the industry is maintaining momentum on the methane decarbonisation pathway. This year’s mid-year review confirms that methane is the practical and realistic solution for shipping decarbonisation. 

“This is reflected in the growing numbers of LNG-fuelled vessels, LNG bunker vessels, and LNG bunkering volumes, as well as biomethane bunkering and production growth. As we look ahead, with e-methane also materialising, we are confident in the trajectory of the methane pathway to decarbonisation.”

SEA-LNG is active at the IMO and EU to underline the importance of goal-based and technology-neutral decarbonisation regulations, and ensure a global market for low and net zero fuels. As the methane pathway continues to mature, efforts have shifted from raising awareness to sharing members’ collective expertise on important technical details that will, for example, further reduce global well-to-wake emissions and scale up bio- and e-methane development and deployment.

As part of these efforts, last week SEA-LNG was granted provisional consultative status at the IMO. This status will enable SEA-LNG to engage directly with Members States as it advocates for practical and realistic regulations to help move the maritime industry forward.

Peter Keller, SEA-LNG Chairman, said: “I have been with SEA-LNG since we founded it 10 years ago, and what strikes me is how methane has ramped up from a pathway to a clear runway for shipping decarbonisation. When building the first LNG-powered containership, I didn’t imagine that within ten years over 10% of the global fleet by deadweight could be powered by methane. 

“What started as a solution to reduce harmful local emissions has cemented itself as the practical and realistic option for reducing greenhouse gas emissions today and into the future. As I look ahead, the fundamentals are strong, the orderbook is growing, the bunkering infrastructure is expanding at a record pace, and biomethane and e-methane are building on LNG’s foundation. Just as we expected.”

Note: SEA-LNG’s Methane Pathway – 2026 mid-year market review can be viewed here.

Photo credit: SEA-LNG
Published: 17 July, 2026

International shipping association BIMCO on Monday (13 July) highlighted its Biofuel Clause for Time Charter Parties 2026 and outlined the clause’s key provisions and what they mean for shipowners and charterers:

As the shipping industry continues its search for viable pathways towards decarbonisation, biofuels have emerged as one of the more immediately available transitional options. They can, in many cases, be used with little or no modification to existing engines and fuel systems, and they offer a practical means of addressing regulatory frameworks.

Recognising this, BIMCO has developed the Biofuel Clause for Time Charter Parties 2026, giving owners and charterers a dedicated contractual framework for the supply and consumption of biofuel during a time charter. 

The clause was developed through BIMCO’s established drafting process, bringing together representatives from owners, charterers, a fuel expert and a P&I Club representative, supported by broad industry consultation. The result is a clause that sets out, in detail, how responsibilities and costs relating to biofuel should be allocated between the parties. 

Why a dedicated clause is needed 

Time charter parties are typically built around the use of conventional fuels, and their speed, consumption and quality provisions are drafted with that assumption in mind. Biofuels differ from conventional fuels in several respects that matter contractually. They can vary considerably in specification and blend, they generally have a lower energy content, and their storage stability over time is generally more limited. Without specific wording addressing these characteristics, a charter party may leave important questions unanswered, including which biofuel specifications are acceptable, how fuel quality is to be verified, how speed and consumption warranties should be adjusted, and what happens if biofuel is not used within a reasonable time. 

The Biofuel Clause for Time Charter Parties 2026 addresses each of these points directly, giving both parties a clear and predictable basis for incorporating biofuel into their operations. 

What the clause covers 

At its core, the clause allows charterers to supply biofuel that meets specifications set out in the clause itself, based on the ISO 8217 fuel standard together with recognised biofuel component standards such as EN 14214, ASTM D6751 and EN 15940. Where charterers wish to supply a biofuel outside these agreed specifications, they may do so only with the owners’ prior written consent, and owners retain the right to require independent quality testing before giving that consent. 

The clause also sets out obligations around notice, fuel quality and segregation. Charterers must give owners reasonable advance notice of an intended biofuel supply, including its specification, blend and quantity, together with written instructions on the intended timing of consumption. Owners, for their part, warrant that the vessel and crew are properly equipped and trained to handle the biofuel safely, and that any tank cleaning required to accommodate the biofuel is carried out at the charterers’ expense where reasonably necessary. The clause further ensures that standard charter party provisions on sampling and quality testing apply equally to biofuel, avoiding the need for a separate regime 

Perhaps the most technically significant element of the clause is subclause (j), which addresses the adjustment of speed and consumption warranties. Because biofuels generally have a different lower calorific value than the conventional fuels on which such warranties are normally based, the clause provides two mechanisms for adjustment: either an agreed percentage adjustment, or a calculation based on the relative calorific values of the reference fuel and the biofuel supplied. Where the parties do not specify a percentage, the calorific value method applies by default. 

The clause further deals with the practicalities of biofuel’s shorter storage life, requiring that any biofuel supplied be consumed within an agreed period, defaulting to ninety days, with a further testing and consumption process if that period is exceeded. Provision is also made for any biofuel remaining on board at redelivery. 

Key points for the parties to consider 

While the clause is designed to be workable as a standard text, several matters call for particular attention before it is incorporated into a charter party. 

The maximum blend ratio inserted in subclause (a) deserves careful thought on both sides. Owners will want assurance that the vessel and its engines can safely accommodate the proposed blend, while charterers will want a ratio that gives them commercial flexibility. The clause includes a prominent reminder to this effect, and parties should not treat the blend percentage as a routine detail to be filled in without discussion. 

Closely related is the effect of biofuel consumption on speed and performance warranties. Because biofuels can behave differently from conventional fuels in terms of energy content, parties should consider in advance which adjustment mechanism under subclause (j) is most appropriate for their charter, and should be satisfied that they understand how any calculation will operate in practice. Owners in particular should be prepared to provide supporting documentation promptly if a speed adjustment becomes necessary. 

Parties should also give thought to the vessel’s technical readiness. The owners’ warranty regarding equipment and crew competence is an important safeguard, but it depends on the necessary preparations genuinely having been completed before biofuel is supplied. Equally, the allocation of tank cleaning costs under the clause rewards early planning, since unresolved questions about tank condition can lead to disputes over cost allocation later. 

Finally, the storage and consumption timeframes in subclause (k) merit attention given the more limited shelf life of many biofuels compared with conventional fuels. Parties operating on trades with longer voyage patterns, or with less predictable bunkering opportunities, may wish to consider whether the default periods are suitable or whether alternative timeframes should be agreed. 

A collaborative response to an evolving market 

The Biofuel Clause for Time Charter Parties 2026 is the result of a collaborative and consensual process, and BIMCO is grateful to the drafting team for their considerable time, effort and commitment in producing the clause. The team comprised Lars Mathiasen of Torm, Jenny Bazakas of Norden, Michael Rasmussen of Hafnia, Mathias Drost of CMA CGM, Kelly Vouvoussiras of Rio Tinto, Gunnar Kjeldsen of Bunker Holding Group, and Joanne Sharma of Steamship Mutual P&I. 

The clause reflects BIMCO’s broader approach to contractual development, identifying an emerging operational need, bringing together the relevant commercial and technical expertise, and producing a clause that has been tested against a wide range of industry views before publication. As biofuel use continues to grow across the fleet, the clause offers owners and charterers a considered and balanced starting point for managing its use under a time charter party.

Photo credit: BIMCO
Published: 17 July, 2026