The shipping sector is actively enhancing fuel efficiency and ship performance to meet decarbonization goals, comply with new regulations, and manage rising operational costs. In response, BIMCO has introduced the Energy Saving Device Retrofit Addendum 2026, a new contractual framework aimed at simplifying the installation of energy-saving devices during time charters. This framework allows shipowners and charterers to negotiate the allocation of costs, time requirements, and fuel savings associated with retrofit projects more flexibly.
Historically, the investment in energy-saving technologies has been hindered by conflicting interests between shipowners and charterers. When shipowners finance the installation of energy-efficient equipment, charterers often reap the operational benefits during the charter period. This misalignment has decreased the motivation for both parties to pursue retrofit projects, despite their potential for significant fuel savings and environmental gains.
The addendum seeks to bridge this gap by enabling customized agreements on cost and benefit sharing for each retrofit project, rather than enforcing a one-size-fits-all approach. It is designed as a technology-neutral framework to accommodate a wide range of current and future energy-saving technologies, addressing both existing and forthcoming environmental regulations as they evolve.
