Slowdown In Alternative Fuel Vessel Orders In March

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  • After a surge in alternative fuel vessel orders in January and February, March witnessed a slowdown in activity, according to DNV’s Alternative Fuel Insights (AFI) database.
  • The report highlights the status of orders for vessels capable of using ammonia, methanol, and LNG propulsion systems, indicating shifts in the maritime industry’s investment trends.

DNV’s AFI database recorded a decrease in new orders for vessels with alternative fuel-capable propulsion systems in March. Only five new orders were added during the month, marking a decline compared to previous months.

Ammonia-Capable Vessels

The database shows an increase in confirmed orders for ammonia-capable vessels, totaling 16 vessels scheduled for delivery by 2027. Bulk carriers account for the largest share of these orders, followed by gas tankers, tugboats, and container ships.

Methanol-Capable Vessels

In contrast to ammonia, there was a significant decline in new orders for methanol-capable vessels in March, with only two additions to the database. The total number of methanol-capable vessels in operation and on order remains substantial, with container ships comprising the largest share.

LNG-Capable Vessels

March saw a notable decrease in new orders for LNG-capable vessels, with only one addition to the database. Despite the slowdown in orders, the total number of LNG-capable vessels in operation and on order remains considerable, indicating the continued significance of LNG as a marine fuel.

Implications and Industry Trends

The slowdown in alternative fuel vessel orders reflects shifting investment trends within the maritime industry. While ammonia continues to gain momentum with increased orders, methanol and LNG face reduced activity in March.

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Source: Engine Online