Shipping industry association BIMCO has adopted a new biofuel clause in time charter agreements that holds charterers liable for loss and damage caused by unsuitable biofuel supplied to the vessel.
A time charter agreement allows a charterer to charter a vessel from the vessel owner for a specified period. The new clause sets a clear framework for what each side is responsible for when using biofuel on board a ship.
The item covers fuels made wholly or partly from biomass. This includes mixtures of FAME and HVO with distillates or residual marine fuel.
The clause states that charterers will be liable for damage to engines or fuel systems, lost time, operational delays, and costs associated with testing, cleaning of tanks and removal of unsuitable fuel, only if such losses result from their failure to supply compatible fuel to the vessel.
The clause defines compliant biofuel as fuel that meets agreed, ISO-compliant specifications and must be stable, properly blended and suitable for ship engines and other machinery.
Charterers may also be liable for losses and removal costs if the biofuel becomes unsuitable after remaining on board beyond the agreed consumption period, unless the shipowner causes the delay.
The clause states that shipowners must ensure that the vessel is properly equipped and approved to use the agreed-upon biofuel and that the crew is trained to handle it safely. Owners will also be responsible for segregating the different biofuel grades, specifications and batches on board.
The clause allows adjustment of ship speed and fuel consumption guarantees when the low calorific value of biofuel increases consumption or prevents the ship from maintaining speed on conventional fuel.
Source: engine, https://www.engine.online/news
