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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 alternative 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 newbuild 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 orderbook in gt terms are alternatively fuelled. Clarksons is projecting that 5% of global fleet capacity will be alternative fuelled by the start of next year.

Other highlights from Clarksons latest green technology update include the statistic that 23% of global tonnage is scrubber fitted.

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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