The Baltic and International Maritime Council (BIMCO) has adopted a new clause to support biofuel use in time charters.
The new clause would address the legal and operational challenges of integrating biofuels into time charters at a time of their increasing usage in the sector, the international shipping association said on 11 June.
“The clause is the product of thorough consideration of safety and technical requirements following extensive consultation with shipowners, charterers, fuel experts and protection & indemnity (P&I) clubs,” said Stinne Taiger Ivø, deputy secretary general and director of contracts at BIMCO.
The clause provided clear definitions, agreed fuel specifications aligned with International Standards Organization (ISO) standards and a structured process for biofuel sampling, testing, storage and handling, the association said.
It also offered mechanisms for performance adjustments when fuels with different calorific values were used and ensured fair adjustment of existing speed and consumption warranties under the charter party.
In addition, the clause addressed safeguards connected to fuel stability, segregation of batches and storage life which reflected operational best practices for the safe use of biofuels on board, BIMCO added.
“The new clause provides a clear framework for the safe use of biofuel. It includes definitions, specification standards and the respective obligations of owners and charterers when biofuels are supplied and consumed,” said Nicholas Fell, chair of BIMCO’s Documentary Committee.
