BIMCO committee to convene for adoption of biofuel clause, other key measures

Photo: BIMCO

The Baltic and International Maritime Council’s (BIMCO’s) documentary committee (DC) will meet online Feb. 25 to consider several significant contractual developments, including a new biofuel clause for time-charter parties, a new allowances clause for the Emissions Trading Scheme-BARECON (bareboat-charter party), and an updated version of the Norwegian sale form (NSF), the most widely used and internationally recognized standard agreement for the sale and purchase of secondhand ships.

These projects have undergone extensive review and are now being presented for adoption.

Biofuel clause

The biofuel clause has been refined through multiple subcommittee meetings to address both DC and industry comments.

The clause sets out defined fuel standards aligned with the International Organization for Standardization (ISO) requirements and outlines practical procedures for sampling, testing, storage and handling.

It also introduces mechanisms for fair speed and performance warranties’ adjustments when using biofuels.

Operational certainty is strengthened through notice requirements, tank‑readiness provisions and safeguards on segregation, commingling and storage life.

The clause supports safe and commercially balanced integration of biofuels, aligning contractual practice with decarbonization ambitions.

ETS-BARECON allowances clause

The ETS allowances clause for BARECON offers a flexible framework to allocate emission-compliance responsibilities under bareboat-charter agreements.

Designed for use with BARECON 2017 and usable for the EU ETS and similar schemes, the clause allows parties to elect whether owners or charterers—or their nominated ship managers—take on ETS obligations, with charterers set as the default.

It also emphasizes cooperation, information-sharing and clear cost allocation, giving stakeholders a practical but adaptable structure that can evolve as regulatory requirements and industry practice develop.

NSF

The revision of NSF aims at modernizing the agreement and improving clarity across key operational and financial provisions.

Updates include refined deposit and payment mechanisms, clearer allocation of parties’ obligations and termination rights and improved rules on inspections, delivery and notice-of-readiness (NOR) procedures.

The form incorporates updated compliance clauses on antibribery, sanctions and confidentiality, together with the BIMCO ETS and FuelEU maritime clauses for memoranda of agreement (MOA).

The revised NSF aims to reduce ambiguity and support efficient sale‑and‑purchase negotiations.