Orders for vessels using alternative fuels declined sharply in September 2025, signalling that many shipowners are adopting a “wait and see” stance, reports gCaptain.
Only 14 new orders were placed during that month, down from previous months, with 12 LNG‑fuelled ships (primarily containers, bulk carriers, and cruise vessels), and 2 LPG carriers.
For the first nine months of 2025, there were 192 alternative‑fuelled vessel orders, a 48% decrease compared to the same period in 2024. Among these, LNG remains dominant with 121 orders, followed by methanol (43), LPG (19), ammonia (5), and hydrogen (4).
Segments & Size Trends
The container segment leads the charge, accounting for 63% of all new orders in 2025, with 120 vessels. Earlier in the year, during the first half of 2025, there was a surge in gross tonnage: orders rose substantially compared to 2024, even though the number of vessels ordered was slightly lower. Larger ships with cleaner fuel technologies had been gaining momentum.
But by late in the third quarter, new builds stalled—there were no new orders in August, and activity in September was subdued.
Why the Slowdown?
Several factors appear to be dampening momentum:
- Regulatory uncertainty: A major concern is the pending adoption of the IMO’s Net‑Zero Framework. Key unknowns include how lifecycle emissions for certain fuels will be assessed, what penalties and compliance obligations will be imposed, and how these will affect return on investments.
- Rising costs: Contracting new builds has become more expensive, both because of material and design costs, and due to the premium required to use lower‑carbon fuel technologies.
- Risk aversion: With uncertain future rules and possibly shifting fuel markets, many shipowners are postponing purchases and are reluctant to commit until regulations and economics become clearer.
Outlook & Implications
The IMO is expected to vote on its Net‑Zero Framework soon. If adopted, this framework would enforce emissions caps and greenhouse gas pricing industry‑wide starting from 2027. It’s seen as a potential catalyst to restore confidence in alternative‑fuelled vessel orders, by providing clarity on future policy and emissions requirements.
Until then, the maritime sector is likely to continue in a holding pattern: evaluating risks, watching policy developments, and delaying major investment decisions in alternative fuel technologies.
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Source: gCaptain
