Xclusiv Shipbrokers: Trend points to expanded use of alternative fuels in shipping

Athens-based Xclusiv Shipbrokers this week, in a commentary, points to a growing trend towards moving towards alternative fuels by ocean-going vessels

According to data presented by the firm for current newbuilding orderbook of all types of merchant vessels, “…a noticeable number of vessels either capable or ready to use alternative fuel, hereinafter mentioned as “alternative fueled”, and most of these orders have been placed during 2021. Year to date, 1325 ships have been inked, of which 378 (29 percent) are to be alternative fueled. In the table below, we observe the total orderbook of 2,241 ships presently under order of which 28 percent will be alternative fueled vessels. As per current orderbook, the fuel of choice is LNG so far, with 61 percent of the alternative fueled orders being LNG capable and 11.6 percent being LNG ready, followed by 14 percent to be fueled by LPG. Ammonia, Methanol & Ethane are fuels that are yet at an early stage of development, so there are fewer orders based on these fuels, while battery hybrid propulsion vessels are still very low in order preference.

As per table above, we see that a significant consistency towards the zero-emission goal is shown in the Gas orderbook with 86 percent of these being capable or ready to use alternative fuels. Tanker orderbook of 520 ships, of which 154 (30 percent) are alternative fueled vessels. In Container orderbook of 670 ships, 146 (22 percent) are alternative fueled. It is worth pointing out, that the Container orders placed only this year, are 523 ships, which are in majority larger than 8000 TEU.