New BIMCO Addendum Aims to Resolve Retrofit Cost Disputes
The International Association of Shipowners and Operators, BIMCO, has released the Energy Saving Device Retrofit Addendum 2026. Developed by the organisation’s Documentary Committee, the addendum provides a standard contractual template for allocating costs and benefits of energy‑efficiency upgrades under existing time charters.
Why a New Framework Was Needed
Historically, shipowners have borne the capital outlay for retrofit equipment, while charterers have reaped the majority of fuel‑cost savings during the charter period. This misalignment has discouraged investment in technologies that can deliver measurable emissions reductions and operating savings.
Key Features of the Addendum
- Technology‑neutral language – applicable to any energy‑saving system, from hull‑modifications to exhaust gas cleaning.
- Cost‑sharing flexibility – parties may negotiate bespoke allocations rather than fixed percentages.
- Time‑frame considerations – outlines how installation periods impact charter duration and compensation.
- Financial benefit split – provides a clear methodology for dividing fuel‑saving gains.
Industry Collaboration
The draft was refined with input from shipowners, charterers and insurers, including representatives from Stena Rederi and Cargill Ocean Transportation. BIMCO completed its consultation phase in June and confirmed that the document is ready for publication.
Implementation and Access
The addendum will be distributed through BIMCO’s SmartCon contract platform, accompanied by detailed guidance notes to assist parties in tailoring the template to individual projects. By offering a common legal basis, BIMCO expects the new tool to streamline negotiations and accelerate the adoption of efficiency measures across the fleet.
Implications for the Maritime Sector
With tightening environmental regulations and rising fuel prices, the ability to share retrofit costs fairly is increasingly critical. The addendum not only supports compliance with IMO targets but also enhances the commercial viability of green investments, potentially leading to broader fleet‑wide upgrades.
Stakeholders are encouraged to review the addendum and consider its integration into upcoming charter agreements to ensure equitable risk‑and‑reward distribution for energy‑saving projects.