BIMCO has agreed a new contractual addendum to promote investment in energy saving technologies throughout the shipping industry by tackling a long-standing commercial challenge: shipowners pay for efficiency improvements and charterers benefit from reduced fuel consumption.
The Energy Saving Device Retrofit Addendum 2026 provides a framework for shipowners and charterers to agree to the sharing of costs, time implications and financial returns of installing energy saving equipment during a time charter.
Shipowners who invest in fuel saving technologies under traditional time charter contracts may find it difficult to recover their investment directly during the term of the charter. Bunkers are usually paid for by charterers and they benefit from lower fuel consumption. In contrast, charterers have little incentive to finance efficiency upgrades themselves, unless the expected payback period is considerably shorter than the charter period.
This gap is where the new contractual mechanism comes in, to make retrofit projects more commercially attractive to both parties, BIMCO said.
Stinne Taiger Ivø, BIMCO’s deputy secretary general and director of contractual affairs, said the addendum addresses a long-standing mismatch between commercial interests at a time when energy-saving technologies are becoming more and more sophisticated. “This misalignment, she said, has made it difficult to make investment decisions for vessel retrofitting.
A flexible framework for different technologies
The addendum allows shipowners and charterers to negotiate arrangements suited to individual projects, taking into account the investment required and the returns expected. Its technology-neutral approach means it can be applied to a range of energy-efficiency solutions, including wind-assisted propulsion systems, hull modifications and other fuel-saving technologies.
The agreement comes as shipowners increasingly turn to retrofits to reduce both fuel expenditure and emissions. Improving vessel efficiency offers a growing commercial advantage as fuel prices rise, a trend reinforced by disruptions in the Middle East. In the longer term, costs are also expected to increase as the shipping industry transitions towards lower-carbon fuels.
As wind-assisted propulsion and other efficiency technologies gain traction, measuring and verifying actual fuel savings is becoming increasingly important. Reliable performance data will be essential for shipowners and charterers to assess the benefits of individual projects and negotiate how the resulting savings should be allocated.
Environmental regulations add to the financial considerations
BIMCO said the new addendum also provides a framework for addressing the implications of existing and future environmental regulations, as shipping companies face increasingly complex compliance requirements.
The European Union Emissions Trading System (EU ETS) and FuelEU Maritime have introduced additional costs and incentives linked to vessel emissions and energy performance. The United Kingdom has also extended its emissions trading regime to cover domestic maritime activities.
BIMCO has previously developed dedicated contractual clauses to clarify how responsibilities for emissions trading and FuelEU Maritime compliance should be allocated between contractual parties. In December 2025, the association also adopted new clauses covering ship sale and purchase agreements.
Nicholas Fell, chairperson of BIMCO’s Documentary Committee, said the industry faces growing pressure to reduce emissions and improve energy efficiency. He explained that the objective was to develop a practical contractual tool capable of unlocking investment in retrofit solutions and supporting shipping’s decarbonisation efforts.
Industry stakeholders contributed to the development
The addendum was developed with input from representatives of shipowners, charterers and protection and indemnity (P&I) interests. An industry sounding board also contributed expertise on retrofit technologies and vessel performance.
BIMCO adopted the contractual addendum on 8 October 2026. The association said the final contractual text would be made available shortly.
