The global fleet of ships powered by cleaner fuels has seen significant growth over the last years, as vessel operations contribute to greener intermodal corridors, supporting IMO’s carbon reduction goals.
According to Intermodal, the current fleet of dual-fuel ships consists of 2,119 ships with a total capacity of 123 million GT, while LNG dominates the shipping market. It also noted that the growing fleet now represents 7.4% of the global shipping fleet based on gross tonnage, a significant increase from 3.2% recorded in 2018.
Liquefied natural gas (LNG), which remains the leading alternative fuel, currently powers 1,248 ships, with a total capacity of 102.93 million gross tons. According to a report by UNCTAD, at the beginning of 2024 the world fleet consisted of about 109,000 vessels (including both cargo and non-cargo ships). The fleet tonnage increased by 3.4%. The total tonnage of the world fleet amounted to about 2.4 billion deadweight tons, with bulk carriers accounting for 42.7% and oil tankers for 28.3% of all tankers.
The share of dual-fuel ships in the global order book continues to grow steadily, now representing 52% of new ships, up from just 16% in 2018. The global dual-fuel order book includes 1,821 ships with a combined capacity of 143 million tons, and 1,042 dual-fuel LNG ships accounting for 103.74 million tons.
Financing
The rise of alternative fuel ships is largely driven by tightening regulatory standards and the increasing availability of financing options, notably through the Poseidon Principles framework. The Poseidon Principles, launched five years ago, are a global framework designed for financial institutions to assess and communicate the climate alignment of their shipping portfolios, thereby promoting the financing of sustainable ships.
According to the fifth annual disclosure report, 35 banks from 14 countries, representing almost 80% of the global ship finance portfolio, have signed up to the Poseidon Principles. Nikos Tagoulis, Senior Analyst at Intermodal, commented: “The implementation of the Poseidon Principles is progressing across the global ship finance portfolio, demonstrating the commitment to sustainable ship finance.”
Renewable Diesel
KPI OceanConnect, a leading global provider of energy solutions for the marine industry, and Neste, the world’s largest fuel producer, have announced the first successful delivery of renewable diesel to the cruise industry in Singapore. Made from 100% renewable raw materials, the fuel is a direct replacement for fossil diesel and is suitable for all engines.
