Alternative Fuel Vessel Orders See Strong Summer Growth

Orders for vessels equipped to use alternative fuels experienced a substantial uplift during the summer months, according to recent industry data. August recorded the highest monthly total for such orders since October of the preceding year, with 52 new vessels added to the tracking platform.

This follows an active July, which saw 47 vessels ordered. The majority of August's activity, 46 orders, was for vessels designed to run on liquefied natural gas (LNG). The container shipping sector led this trend with 30 orders, while the car carrier segment contributed an additional 12 LNG-fuelled vessels.

Beyond LNG, the month's orders included four bulk carriers specified for ethanol fuel and two bulk carriers intended for hydrogen power. An LNG bunker vessel was also among the new additions, reflecting a diversified approach to future marine propulsion.

This strong performance over the summer represents a significant acceleration in ordering activity, contrasting with a slower start to the year. Cumulatively, 242 alternative-fuelled vessel orders have been placed in the first eight months of the current year, marking a 27% increase compared to the same period in the previous year.

LNG continues to be the predominant choice among alternative fuels, accounting for 63% of all such vessel orders recorded year-to-date. Within these LNG orders, container vessels constitute the largest share at 59%, followed by car carriers at 30%. This sustained investment underscores the industry's ongoing commitment to exploring various pathways for lower-emission shipping.