In June, new orders for alternative-fuelled vessels predominantly featured liquefied natural gas (LNG), according to figures released by DNV. Out of 15 ships contracted with alternative fuel capabilities, ten were specified to run on LNG. This demonstrates a continued strong preference for LNG as a transitional fuel in the maritime sector.
This development is significant for freight forwarders and shippers as it signals a long-term commitment by carriers to decarbonization efforts, albeit with a reliance on LNG, which is still a fossil fuel. The increasing number of LNG-powered vessels could lead to more stable bunker costs for these ships, potentially influencing freight rates on specific routes. However, the availability of LNG bunkering infrastructure remains a consideration for route planning and vessel deployment. The sustained investment in LNG vessels also suggests that while other alternative fuels like methanol and ammonia are gaining traction, LNG continues to be a practical and readily available option for newbuilds in the near to medium term.
