The shipping industry is undergoing a major transformation as companies increasingly turn to alternative fuels to meet climate goals and regulatory demands. According to Niels Rasmussen, as of the end of August 2025, there are 534 container ships on order capable of using alternative fuels.
These represent more than half of the total ships on order (53%) and account for 77% of the total TEU capacity. This marks a significant shift towards greener shipping practices, especially in the container sector.
Alternative Fuels Gain Ground in Container Shipping
Alternative fuels have become particularly attractive for large container ships. For vessels with a capacity of 8,000 TEU or more, 81% of the ships and 85% of the TEU capacity on order are designed to use alternative fuels.
However, the same enthusiasm has not been seen in smaller ships, bulkers, and tankers, where orders remain low. A key reason for this difference is that the container shipping sector is dominated by a few major companies that can invest in new technologies, while bulkers and tankers often involve smaller operators with limited resources.
LNG and Methanol Lead the Transition
Among the available options, LNG (Liquefied Natural Gas) is currently the most popular alternative fuel, powering two-thirds of all alternatively-fuelled ships on order. Methanol comes second, accounting for 31%. Interestingly, methanol led the market in 2023, but LNG has since regained dominance due to wider fuel availability.
While the technology for greener ships already exists, the challenge lies in ensuring that alternative fuels, such as bio-LNG or e-fuels, are widely accessible. Without reliable supply chains, operators remain cautious about committing to new fuel types.
If current trends continue, by 2030 the container fleet could include 837 alternatively-fuelled ships with a capacity of 10.9 million TEU, representing more than a quarter of the world’s total container capacity.
While this progress is promising, the slowdown in orders seen in August 2025 marking the first month since 2018 without new contracts highlights ongoing uncertainty. The future of green shipping will depend not only on technological advances but also on the global availability and affordability of alternative fuels.
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Source: BIMCO
