(Commonwealth_ In October 2024, the global shipping industry saw a surge in orders for vessels capable of running on alternative fuels, with 97 newbuild orders placed during the month. Of these, 66 were for vessels designed to operate on liquefied natural gas (LNG), 29 were for methanol-capable vessels, and two were for vessels powered by liquefied petroleum gas (LPG), according to figures from DNV’s Alternative Fuel Insights platform. This was the strongest month of the year for methanol-fueled vessel orders, signaling significant growth in the adoption of alternative fuels in the maritime industry.
The methanol orders brought the total number of methanol-fueled vessels ordered in 2024 to 162—a 9% increase compared to the same period in 2023. Notably, 20 of these new methanol orders were for bulk carriers, further indicating that the demand for methanol-powered vessels is broadening across different types of ships. In total, the number of methanol-fueled vessels on order and in operation is now significantly higher than in previous years, as shipping companies increasingly turn to alternative fuels to meet environmental regulations and decarbonization targets.
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However, LNG-powered vessels saw the biggest growth in orders. With 66 new LNG-powered vessel orders in October alone, the total number of LNG-fueled vessels ordered in 2024 has reached 229, marking an impressive 106% year-on-year increase. It’s important to note that these figures exclude LNG carriers, which are a separate category. Of the 66 new LNG orders in October, 58 were for container ships, underscoring the dominance of LNG in the shipping sector.
The growth in LNG-powered vessels is indicative of the maritime industry’s broader shift toward using cleaner fuels, as companies seek to reduce their carbon footprints in response to tightening emissions regulations. LNG-powered ships now dominate the alternative fuel fleet, which includes both operational and upcoming vessels. There are more than 1,200 vessels in operation or on order capable of running on LNG, compared to under 400 vessels designed to run on methanol. Additionally, the majority of orders and vessels in service in the LNG fleet are container ships.
In total, over 650 container ships are now either in operation or on order with alternative fuel capabilities, with LNG being the dominant fuel choice. In contrast, the current design of fewer than 300 gas tankers, including LPG vessels, and fewer than 250 car carriers allows them to operate on alternative fuels. This highlights the significant role that container shipping is playing in the shift toward alternative fuels, which is being driven by the need for both decarbonization and compliance with new environmental regulations, including the International Maritime Organization’s (IMO) targets for reducing greenhouse gas emissions.
Overall, the first 10 months of 2024 have seen 464 orders for alternative-fueled vessels, marking a 46% increase compared to the same period in 2023. This growth highlights the ongoing momentum in the shift toward cleaner fuels in the maritime industry, with LNG leading the way as the fuel of choice for most newbuild vessels. The continued rise in orders for LNG-powered vessels is particularly notable, with 177 LNG orders placed since July, compared to just 52 in the first half of the year. Activity in the container segment, which has seen a significant uptick in newbuild orders, primarily drives this surge.
Methanol, while still a smaller player in comparison to LNG, is also showing resilience in the market. The 162 orders for methanol-fueled vessels placed in the first 10 months of 2024 have already surpassed the total number of such orders placed in 2023. This indicates that methanol is continuing to gain traction as a viable alternative fuel, particularly in the bulk carrier sector, where orders for methanol-powered ships are becoming more common.
