BIMCO Launches CO2 Transport Standard as Low-Carbon Shipping Demand Falters

The shipping industry is witnessing a widening disconnect between the expansion of decarbonization infrastructure and actual market demand, even as major regulatory bodies push standardization forward. The International Maritime Organization-aligned group BIMCO has published **CO2TIME 2026**, a new time charter party designed specifically for the maritime transport of liquefied carbon dioxide (LCO₂). The development reflects the rapid growth of carbon capture, utilization, and storage (CCUS) projects globally, which require specialized shipping solutions. The new standard addresses a critical gap: operators moving into the emerging CO2 trade now have a contractual framework that accounts for the unique operational, safety, and regulatory requirements of transporting liquefied carbon dioxide. Yet even as the industry develops infrastructure for carbon transport, fundamental market incentives for broader decarbonization are weakening. According to the Boston Consulting Group's latest Shipping Decarbonization Survey, cargo owners' willingness to pay (WTP) a premium for low-carbon fuels has dropped sharply—from 4.5% in 2024 to just 3% in 2025, a level not seen since 2022. This erosion suggests that despite years of industry commitment to greener practices, the economic case for decarbonization remains fragile. The paradox reflects broader market pressures. The dry bulk sector illustrates the challenge: vessel prices have strengthened over the past several months, yet earnings have remained largely flat, according to shipbroker analysis. This disconnect signals that investor optimism is not tied to fundamentals—a volatile foundation for long-term decarbonization investment, which typically requires sustained economic returns. Meanwhile, global shipping faces fresh disruptions that may further dampen decarbonization momentum. Ongoing disruptions in the Strait of Hormuz have created wider economic ripples tracked by a new UNCTAD dashboard measuring risks across shipping, energy, food, and finance. While the dry bulk segment has remained relatively insulated from freight rate pressure, the uncertainty surrounding critical chokepoints reinforces operators' preference for cost minimization over environmental premium investments. The CO2TIME 2026 charter party represents genuine progress in maritime infrastructure—BIMCO's commitment to standardization removes friction from an emerging market segment. However, the simultaneous decline in shipper demand for low-carbon premiums and persistent earnings pressure suggests that regulatory scaffolding alone cannot drive industry-wide decarbonization. Closing this gap will require either sustained cargo owner commitment, stronger policy incentives, or clearer long-term profitability signals for green shipping investments.