Container Shipping Sector Embraces Alternative Fuels with Record Orders

As of August 2025, 534 container ships on order are set to run on alternative fuels, representing 53% of the total order book and 77% of TEU capacity. While LNG is the leading alternative fuel, orders for smaller vessels lag. In contrast, bulker and tanker sectors show lower adoption rates of alternative fuels, largely due to a predominance of smaller operators. By 2030, the container fleet is projected to include 837 alternatively fueled ships, potentially comprising over 25% of total capacity.

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Published Sep 19, 2025

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As the shipping industry navigates the transition to sustainability, the container sector is leading the charge with a significant order of 534 container ships designed to utilize alternative fuels, as reported by Niels Rasmussen, chief shipping analyst at BIMCO. This figure accounts for 53% of all ships on order and an impressive 77% of TEU capacity, underscoring the sector's commitment to reducing its carbon footprint.

Notably, the trend towards alternative fuels is most pronounced among the largest vessels. In the category of ships with a capacity of 8,000 TEU or more, a remarkable 81% are equipped to operate on alternative fuels, reflecting a growing preference for environmentally friendly options.

However, the enthusiasm for such vessels is not mirrored in the bulk carrier and tanker sectors, where only 8%, 17%, and 9% of the ships on order are designed for alternative fuels. This disparity may stem from the prevalence of smaller operators in those sectors, which contrasts sharply with the container market dominated by larger companies.

LNG has emerged as the frontrunner among alternative fuels, comprising two-thirds of all alternatively fueled ships on order. Meanwhile, methanol-fueled ships, which led the orders earlier in 2023, have seen their market share dwindle as LNG's popularity surged.

This shift raises critical concerns about the availability of the necessary fuel for these ships. While the technology for constructing low-carbon vessels exists, the supply of suitable alternative fuels is yet to catch up. Currently, LNG is mostly a carbon-intensive fuel, but there are prospects for it to transition into a low-carbon biofuel or e-fuel in the future.

Looking ahead, if the current order book is fully realized, the container fleet could boast 837 alternatively fueled ships by 2030, representing a substantial capacity of 10.9 million TEU. This would equate to more than 25% of the total container capacity in operation, signaling a pivotal moment for the industry as it pledges to embrace more sustainable practices.