THE Baltic and International Maritime Council (BIMCO) has launched a subcommittee to draft a Biofuel Clause for Time Charter Parties, reports London's Port Technology International.

This addresses legal and operational challenges as biofuels gain traction in world shipping.

With regulations like the EU ETS, FuelEU Maritime, and upcoming International Maritime Organisation (IMO) net-zero measures reshaping fuel strategies, biofuels are emerging as a key tool for emissions reduction. However, their use in charter agreements raises concerns around fuel quality, engine compatibility and liability.

The subcommittee, comprising shipowners, charterers, P&I clubs, and technical experts, first met on April 7 to define standards for biofuels, clarify supply and handling procedures, and align usage with performance and regulatory requirements.

The clause will also address practical issues such as blending, storage, and the impact on speed and consumption warranties.BIMCO's goal is to deliver a flexible yet reliable contractual solution that supports low-carbon compliance without compromising vessel performance.

A draft clause is expected at the Documentary Committee meeting in October 2025, offering clearer guidance for stakeholders in the energy transition.

In November 2024, BIMCO launched a Ship Recycling Alliance to help accelerate safe and environmentally sound recycling of ships. The alliance will coordinate the voices of the ship recycling industry and the shipping industry and help facilitate the global implementation of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).