BIMCO’s Documentary Committee has approved a new Methanol Annex to be added to the Bunker Terms 2018, the international standard agreement for supplying marine fuels. With this update, the organization “broadens its contractual framework to accommodate the use of alternative fuels and support the decarbonization of shipping.”
The annex introduces dedicated definitions reflecting recent progress in methanol bunkering and sets out requirements for sustainability certification, in line with regulations such as FuelEU Maritime. Its aim is to ensure full traceability and environmental credibility for the fuel supplied.
According to Nicholas Fell, chair of BIMCO’s Documentary Committee, the annex was drafted in close cooperation with technical and industry specialists “to make sure it meets the practical and legal needs arising from the use of methanol as a marine fuel, taking into account both current practices and anticipated regulatory developments.”
Through a so-called Election Sheet, parties will be able to specify parameters such as greenhouse gas intensity limits, fossil reference values, and methodologies for calculating emissions. This flexible structure will allow the contract to adapt to future regulations and help parties agree on the most relevant parameters for each bunker delivery.
Given methanol’s toxicity and the handling risks it poses, the annex also incorporates dedicated safety provisions. These include mandatory use of closed or remote sounding procedures during loading and discharge operations, as well as additional measures for sampling and measuring the product, all aimed at protecting the crews involved.
“The adoption of the Methanol Annex builds on the work started with the LNG annex approved in 2023,” noted Stinne Taiger Ivø, BIMCO’s Deputy Secretary General and Director of Contracts. “We continue to develop and align supply terms for emerging fuels, with an ammonia annex next in line. A clause on biofuels applicable to time charter contracts is also in preparation.”
With this new document, BIMCO further strengthens its role in standardizing the supply of alternative fuels—an essential area for advancing the maritime sector’s energy transition.