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Maritime Insights and Knowledge-hub The fleet of the future: how the industry is moving the needle

The fleet of the future: how the industry is moving the needle

Ship optimisation Dec. 11, 2024
The fleet of the future: how the industry is moving the needle

Order books are filled with newbuilds that will be capable of operating on alternative fuels. According to a report from research and brokerage firm Clarksons, 539 newbuilds capable of sailing on alternative fuels were ordered in 2023, charting a greener course for global shipping.

A total of 98.2% of the world’s fleet currently sails on conventional fuels (IHSMarkit and DNV’s Alternative Fuels Insights). This translates to 93.5% of cargo volumes today being transported using conventional fuels, meaning that only 6.52% is being transported using alternative fuels such as LNG and battery/hybrid. However, the order books paint a picture of a future with a different world fleet. Once these orders are completed, 51.3% of cargo volumes will be transported using alternative fuels.

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The world’s first methanol vessel

One shipping company that has placed orders for ships capable of operating on alternative fuels is Maersk. In the past two years, Maersk has ordered 25 ships to sail on green methanol, with 19 in production and expected in operation by 2025.

“The time to act is now if we are to solve shipping’s climate challenge. This order proves that carbon-neutral solutions are available today across container vessel segments and that Maersk stands committed to the growing number of our customers who look to decarbonise their supply chains. Further, this is a firm signal to fuel producers that sizable market demand for the green fuels of the future is emerging at speed.” CEO at A.P. Moller - Maersk, Soren Skou

“The time to act is now if we are to solve shipping’s climate challenge.”

— Søren Skou, CEO at A.P. Moller

In September 2023, Maersk was able to present the company’s – and world’s – first container vessel that sails on green methanol, Laura Maersk. At the name-giving ceremony of the new vessel, President of the European Commission Ursula Von der Leyen stated in her speech that:

“Just a few years ago, a large vessel sailing on green methanol would have been unlikely, perhaps even impossible (…). This ship, this moment, embodies Europe's decision to pioneer the fight against climate change. We are turning a noble generational task into a new growth strategy.”

 

An industry on the move

Other shipping companies are looking in the same direction. In July 2023, Evergreen announced their order for 24 large methanol dual fuel container ships at shipyards in Japan and South Korea. Evergreen disclosed the purchase price at between $180-210 million per ship, bringing the total value of the two orders to more than $5 billion.

CMA CGM, COSCO /OOCL and Ocean Network Express (ONE) have also placed orders for similar vessels.

With the first methanol ships already launched and many more on the way, a picture emerges of a shipping industry that is moving the needle towards a world fleet that will increasingly consist of ships capable of operating on alternative fuels rather than fossil fuels.

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