Dual-fuel ships boom globally

In The Netherlands, Offshore Energy reports the global fleet of eco-friendly dual-fuel ships has surged to 2,119 vessels, representing 7.4% of the world’s gross tonnage, a sharp rise from 3.2% in 2018, according to Intermodal data. These vessels, capable of operating on cleaner fuels, now boast a combined capacity of 123 million gross tons, with LNG dual-fueled ships making up 84% of this segment.

The shift is also evident in the orderbook, where dual-fuel ships account for 52% of all new builds, a leap from just 16% five years ago. Currently, 1,821 dual-fuel vessels, including 1,042 LNG-fueled ships, are under construction with a combined gross tonnage of 143 million.

This trend is propelled by tighter environmental regulations and the Poseidon Principles, a framework enabling financial institutions to assess the climate alignment of their shipping portfolios. Since its launch, 35 banks from 14 countries, representing 80% of global ship financing, have signed on.

However, challenges remain. Nikos Tagoulis, Senior Analyst at Intermodal, said, “The declined recycling activity of the last years hinders fleet modernization. The pace of fleet demolition will be a critical factor to monitor in the coming year.”

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