The orderbook of container ships powered by alternative fuels has reached 40% of under-construction tonnage, as the past six months have seen carriers turn their focus from conventional fuel oil.
Alphaliner’s latest report stated that there are now 198 orders for LNG dual-fuelled boxships, amounting to 2.31 million TEU, or 30% of the orderbook, compared with 25% a year ago.
Noticeably, methanol-fuelled units are gaining favour, and now total of 68 under-construction units of 930,000 TEU, or 12% of the orderbook, a remarkable jump from just 1% a year ago.
Significant orders came in February, when HMM ordered nine 9,000 TEU methanol dual-fuelled ships at Hyundai Samho Heavy Industries (HSHI) and HJ Heavy Industries, while CMA CGM booked a dozen 13,000 TEU methanol dual-fuelled vessels at HSHI.
Alphaliner said, “The figures show the green revolution in container shipping is now firmly underway with carriers using huge cash deposits to remake their fleets for the energy transition. Underlining the shift away from conventional propulsion, just 14% of capacity ordered in the second half of 2022 was powered by fuel oil.”
With the global push to achieve carbon neutrality by 2050, ship owners have been exploring non-fuel-oil propulsion for their fleets.
Orders for boxships powered by conventional fuel oil continue to shrink. Year to date, of the 380,000 TEU ordered so far, just 8% are propelled by conventional fuel oil.
Maersk Line is leading orders for methanol-powered newbuildings, with nearly 300,000 TEI of methanol dual-fuel capacity on order, equivalent to 80% of its contracted newbuilding tonnage. The Danish carrier most recently placed orders for six 17,000 TEU units at Hyundai Heavy Industries in October 2022, for delivery over a seventh-month period terminating in December 2025.
That said, CMA CGM could leapfrog Maersk Line in this space, as the French carrier is reportedly planning to commission six 16,000 TEU methanol dual-fuelled ships at China’s Jiangnan Shipyard.
Martina Li
Asia Correspondent
