LNG newbuilds continue momentum into 2025

Shipowners ordered 12 alternative-fuelled ships in January, all LNG dual-fuel capable, according to a leading class executive.

Quoting data from DNV’s Alternative Fuels Insight platform, DNV global decarbonisation director, Jason Stefanatos said this “highlighted an ongoing trend towards LNG in the latter half of 2024.”

Furthermore, the orders all came from the container segment. “This trend continues to be driven, in part, by demands from cargo owners and consumers for more sustainable and greener supply chains,” he noted.

By far, container ship and pure car truck carrier owners have been the strongest proponents of LNG as an alternative fuel. The latest data indicates 150 box ships and 62 car carriers can operate on LNG. Another 314 container ships and 146 car carriers with LNG dual-fuel engine technology are on order, according to DNV.

Mr Stefanatos pointed out both segments use business-to-consumer type vessels, allowing them to pass on the capex of investing more easily in alternative fuel tonnage.

Additionally, LNG bunkering service is more mature for liner service vessels than other alternative fuels.

Not counting LNG carriers that use LNG as fuel, there are 657 LNG dual-fuel vessels in operation and another 628 on order.