A new Bimco contractual framework aims to remove a frequently-cited barrier to investment in energy-saving technologies by allowing shipowners and charterers to share the costs and benefits of retrofits.
The association has adopted a new contractual addendum aimed at encouraging investment in energy-saving retrofits by addressing the commercial disconnect between shipowners paying for equipment and charterers benefiting from reduced fuel consumption.The Energy Saving Device Retrofit Addendum 2026 provides a framework for owners and charterers to agree how the costs, time implications and financial benefits of installing energy-saving technology should be shared during a time charter.Under traditional time charter arrangements, shipowners investing in fuel-saving equipment may see little direct financial return during a charter period, as charterers typically pay for bunkers and therefore benefit from reductions in fuel consumption. Charterers meanwhile are less incentivised to invest in energy saving technologies except where payback periods are significantly shorter than charters.
The new addendum addresses a long-standing commercial challenge. Energy-saving technologies have become increasingly sophisticated, but investments in retrofit projects have been complicated by a misalignment of commercial interests between owners and charterers,” said Stinne Taiger Ivø, Bimco deputy secretary general and director of contractual affairs.
The flexible addendum allows parties to negotiate arrangements appropriate to individual retrofit projects, adapting to specific investments and returns. The framework is technology-neutral, applicable to a range of energy-saving solutions, such as wind-assisted propulsion, hull modifications and other fuel-efficiency technologies.
The agreement comes as shipowners increasingly invest in energy-saving retrofits to reduce fuel costs and emissions. Fuel efficiency is a commercial advantage that grows in significance as fuel prices increase. Fuel prices have risen in the wake of disruption in the Middle East and are expected to increase further in the long term as the industry transitions to low carbon fuels.
The growth in wind-assisted propulsion and other efficiency technologies is also bringing greater attention to the measurement and verification of fuel savings. Reliable data will be key to enabling owners and charterers to negotiate how retrofit benefits should be shared.Bimco’s new addendum also provides a framework for addressing the implications of existing and future environmental regulations, it said, as the industry faces increasingly complex compliance obligations.
The EU Emissions Trading System and FuelEU Maritime have added new costs and incentives linked to vessel emissions and energy performance, while the UK has also expanded its emissions trading regime to domestic maritime activities.
Bimco has previously developed dedicated clauses addressing the allocation of emissions trading and FuelEU Maritime compliance responsibilities between contractual parties, including new clauses for ship sale and purchase agreements adopted in December 2025.
“The shipping industry is under increasing pressure to cut emissions and improve energy efficiency. Our objective has been to create a practical tool that can help unlock investments in retrofit solutions and support the industry’s decarbonisation efforts,” said Nicholas Fell, chairperson of Bimco’s Documentary Committee.