BIMCO to develop new biofuel clause for charterers

The shipping body Baltic and International Maritime Council (BIMCO) has formed a subcommittee to develop a new clause on biofuel use for time-charter agreements.

IMAGE: Biofuel barrels. Getty Images

The subcommittee “will focus on defining the scope and standards for biofuels, clarifying how they may be supplied and handled, and ensuring that their use aligns with performance expectations and regulatory obligations,” BIMCO said.

Biofuels are gaining a lot of attention from shipowners as a means to reduce emissions and comply with regulations such as the EU ETS and FuelEU Maritime, the shipping body noted. Their popularity is expected to grow further when the IMO’s Net-zero Framework comes into effect in 2028.

There are a lot of questions around marine biofuels, including on fuel quality, engine compatibility and liability, it said. The new subcommittee, which comprises shipowners, charterers, P&I representatives and technical experts, will address these challenges.

The group held its first meeting on 7 April. It is expected to present a draft clause at BIMCO’s Documentary Committee meeting in October this year.

By Shilpa Sharma

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