61% of all orders in Q1 were for alternatively fuelled vessels

Shipping’s generational change to alternate forms of fuel is accelerating. Data from Clarksons Research shows a record 61% share of all orders in the first quarter of this year were alternatively fuelled: excluding LNG carriers the share was 48% and 10% of all orders were both LNG fuelled and ammonia ready. For context, in 2021 32.7% of newbuild tonnage ordered was for alternative fuel capable vessels, up from 209 orders in 2020 and 46 orders in 2016.

Breaking the Q1 order numbers down, 57% of new-build contracts by tonnage were LNG fuelled, with 3.4% methanol fuelled, 0.6% of orders ethane fuelled, and 0.7% included battery hybrid propulsion. A further 12% of orders were ammonia ready, 1.4% LNG ready and 0.1% of orders were hydrogen ready.

As it stands 4.5% of the global merchant fleet on the water and 37.8% of the order book in gt terms are alternatively fuelled. Clarksons is projecting that 5% of global fleet capacity will be alternatively fuelled by the start of next year.

The average age of the world fleet is getting older with Clarksons’ warning that under the impending Carbon Intensity Indicator (CII) legislation, around 29% of today’s tanker, bulk carrier and container fleets would be D or E rated in 2023 rising to over 40% if they are still trading in 2026 and have not modified speed or specification.

Source: Splash247

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