BIMCO adopts addendum to support investments in retrofit projects

The shipping industry is actively seeking ways to enhance fuel efficiency and ship performance in response to decarbonisation demands, evolving regulations, and escalating operational costs. In support of these advancements, BIMCO has introduced the Energy Saving Device Retrofit Addendum 2026. This new contractual agreement aims to streamline the installation of energy-efficient devices throughout the duration of a time charter, offering owners and charterers a flexible method for determining how costs, time factors, and fuel-saving advantages linked to retrofit projects should be distributed.

Stinne Taiger Ivø, Deputy Secretary General & Director of Contractual Affairs at BIMCO, highlights that the addendum resolves a longstanding commercial issue. While energy-saving technologies have progressed significantly, investments in retrofit projects have been hindered by a discordance of commercial interests between owners and charterers.

This discrepancy arises when shipowners finance the acquisition and installation of equipment onboard a vessel, and some or all of the operational benefits frequently go to charterers during the charter period. Consequently, the motivation for parties to execute retrofit projects has diminished, even when such initiatives could yield substantial fuel savings and environmental benefits.

The new addendum tackles this challenge by enabling parties to tailor the allocation of costs and benefits for each project, rather than enforcing a singular commercial model. Nicholas Fell, Chairperson of BIMCO’s Documentary Committee, explains that the industry is facing mounting pressure to decrease emissions and enhance energy efficiency. The primary objective has been to devise a practical instrument to facilitate the investment in retrofit solutions and bolster the industry’s decarbonisation efforts.

The addendum has been formulated as a technology-neutral framework, capable of accommodating a wide array of existing and future energy-saving technologies. Additionally, it includes a framework to address both current and upcoming environmental schemes, as environmental regulations are continuously evolving.