In the first five months of this year, the share of new orders for alternative-fuel vessels globally further declined to 29.5%, hitting a new low in nearly four years. After several consecutive years of rapid growth, the global enthusiasm for ordering alternative-fuel vessels has begun to cool significantly.
According to the latest statistics from Clarksons, among the total 1,108 new ship orders of 69.2 million gross tons (GT) globally from January to May this year, as many as 253 vessels totaling 20.4 million GT were alternative-fuel vessels, accounting for 29.5%, lower than the 35.9% for the full year of last year. In terms of order value, global newbuilding investment totaled $102.5 billion in the first five months of this year, with the value of alternative-fuel vessel orders reaching $40 billion (approximately RMB 271.928 billion), up 7% year-on-year, accounting for 39.1%.
This year’s alternative-fuel vessel orders include 149 LNG-powered vessels (16.7 million GT), 6 methanol-powered vessels (0.6 million GT), 40 LPG-powered vessels (2.0 million GT), 7 ethane-powered vessels (0.4 million GT), and 51 /hybrid propulsion vessels (0.8 million GT).
In recent years, the share of alternative-fuel vessels in global new ship orders has generally shown a rapid upward trend, rising from 8.2% in 2016 to 32.1% in 2021, reaching an all-time high of 55.1% in 2022, then falling back to 41.9% in 2023, recovering to 43.4% in 2024, dropping again to 35.9% in 2025, and further declining to 29.5% in the first five months of this year.
In terms of shipbuilding country, Clarksons’ data shows that the vast majority of alternative-fuel newbuilding orders in May 2026 were taken by Korean shipyards, totaling 38 vessels or 2.118 million CGT, accounting for 90.38% of alternative-fuel newbuilding orders in May 2026 by CGT, ranking first globally in order intake. This includes 20 LNG dual-fuel vessels (1.583 million CGT) and 18 LPG-powered vessels (0.535 million CGT).
Meanwhile, Chinese shipyards received a total of 8 alternative-fuel orders totaling 0.193 million CGT in May, with a market share of 8.25%. This includes 2 LNG dual-fuel vessels (0.038 million CGT), 2 ethylene-powered vessels (0.064 million CGT), and 4 /hybrid vessels (0.091 million CGT).
According to Clarksons’ data, overall, by tonnage, the proportion of vessels in the operating fleet capable of using alternative fuels or propulsion devices has now increased to 9.9%, up from 2.9% at the beginning of 2018 and 7.7% at the beginning of 2025. Among the existing total of 2,986 alternative-fuel vessels, there are 1,641 LNG-powered vessels, 147 methanol-powered vessels, 168 LPG-powered vessels, 892 /hybrid propulsion vessels, and an additional 317 vessels using other fuels.
In the orderbook, the share of alternative-fuel vessels has reached 44.0%, higher than the 14.1% at the beginning of 2018, but lower than the 49.6% at the beginning of 2025. By tonnage, 32.6% of the orderbook consists of LNG-powered vessels (1,109 vessels), 7.0% methanol-powered vessels (290 vessels), 1.8% LPG-powered vessels (158 vessels); in addition, about 2.6% (approximately 608 vessels) use other alternative fuels, including 50 hydrogen-fueled, 56 ethane-fueled, 49 ammonia-fueled, and 568 /hybrid propulsion vessels. The total number of alternative-fuel vessels in the orderbook is 2,165.
As future fuel options continue to expand, the number of alternative fuel-ready vessels is also increasing. Currently, there are 702 LNG-ready vessels in the operating fleet, with another 302 in the orderbook; meanwhile, the orderbook includes 339 ammonia-ready vessels, 864 methanol-ready vessels, and 17 hydrogen-ready vessels.
At the same time, the latest statistics from DNV’s Alternative Fuels Insight (AFI) platform also show that the enthusiasm for ordering alternative-fuel vessels in 2026 has cooled compared to last year. In May this year, there were a total of 36 new orders for alternative-fuel vessels globally, including 26 ethane carriers, 8 LNG dual-fuel vessels (6 container ships and 2 car carriers), and 2 ethanol-fueled bulk carriers.
It is noteworthy that there were no methanol-fueled vessel orders in May, while ammonia-fueled and hydrogen-fueled vessels are still awaiting further technological maturity and infrastructure improvement.
In the first five months of 2026, the total number of alternative-fuel vessel orders reached 119, with LNG-powered vessels continuing to dominate, totaling 60 orders, of which approximately 42 came from the container ship sector and 12 from the car carrier sector. This was followed by ethane-powered vessels, with a total of 50 orders. Ordering activity for other fuel types remained relatively limited, including 4 /ethanol-fueled vessels, 4 ammonia-powered vessels, and 1 hydrogen-powered vessel. As of the end of May, the share of alternative-fuel vessels in global new ship orders was significantly lower than the level in the same period of 2025.
Jason Stefanatos, Global Decarbonization Director at DNV, stated that while the pace of ordering alternative-fuel vessels in 2026 has slowed compared to last year, what is more noteworthy is that shipowners’ fuel selection philosophy is changing. He pointed out that shipowners no longer view future fuels as a one-time technological bet, but rather as a long-term portfolio decision, seeking a balance between fuel flexibility, investment timing, and future regulatory risks to reduce the risk of creating “stranded assets.”
DNV believes that against the backdrop of continuously evolving global decarbonization policies, fuel supply systems, and market demand, shipowners have not stopped advancing the deployment of alternative fuels and new technologies, but are adopting more prudent, diversified, and flexible investment strategies. This is also a significant reason for the structural changes in alternative-fuel vessel orders in 2026.
