BIMCO (the International Shipping Association) approved an amendment called the Energy Saving Device Retrofit Addendum 2026 on October 8, 2026, which addresses the sharing of costs and benefits of fuel savings in chartered ships. This agreement is particularly important as ship owners and charterers seek to optimize costs and reduce emissions.
Historical Challenges in the Shipping Industry
In the shipping industry, there has always been a dispute between ship owners and charterers regarding fuel optimization costs. Typically, ship owners incur costs for fuel savings, but the benefits of these savings usually go to the charterers. This issue can lead to a reluctance among owners to invest in new technologies.
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According to DNV forecasts, retrofitting ships can achieve fuel savings of up to 16 percent. The cost of these retrofits is estimated at around $2.35 million, with a payback period averaging between 1 to 4 years. However, these calculations only pertain to the ship owner and do not clarify who actually benefits from these savings.
The New Agreement and Its Implications
The new BIMCO agreement allows owners and charterers to fairly share costs and benefits. For example, if an owner pays for fuel reduction costs but the charterer benefits from the savings, this imbalance can lead to dissatisfaction and a reduced willingness to invest in optimizations. With this contract, parties can more transparently agree on who will benefit from what amount of savings.
In October 2025, Maersk launched a program to update its fleet of around 200 chartered ships, which includes over 1,500 fuel optimization projects. This program reflects the shipping industry's willingness to invest in new technologies to reduce costs and emissions.
This agreement also includes independent analyses to determine the actual amount of fuel savings. For instance, if a ship consumed 10,000 tons of fuel last year and 8,500 tons this year, these numbers alone cannot justify the savings. Therefore, there is a need for more accurate assessments to determine the actual savings.
Ultimately, this new agreement represents a significant advancement in the shipping industry that could lead to increased willingness to invest in fuel-saving technologies and help reduce costs and emissions.
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