Bottlenecks Slow New LNG-Fueled Ship Orders in June

Only two LNG-fueled ships were ordered in June as bottleneck pressure slowed orders, according to classification society DNV.

June actually saw six vessels added to DNV’s count due to an adjustment, bringing the total order figure to 83 for Q2 quarter and 153 for the year so far.

“Halfway through 2022 the YTD (net) count for new LNG fuelled vessel orders stands at 153. Though we have predicted a slowdown of orders for the remainder of the year, the very low June growth is likely to be a bottleneck rather than a trend,” said Martin Wold, Principal Consultant in DNV’s Maritime Advisory business. “There are many tens of [dual-fuel] vessels for which signing is reported to be imminent.”

Containerships and car carriers continue to lead the way in terms of LNG-powered ship orders. Notably, the second quarter also saw car carriers break through the 100 confirmed ships mark while containerships surpassed the 200 ships mark.

“78% of orders for LNG fuelled tonnage this year have been container vessels and car carriers and continued growth this year will depend on newbuild activities in these segments. With an orderbook to sailing fleet ratio of five and 10 respectively for LNG fuelled container vessels and car carriers, it says a lot about the transformation the LNG bunker industry will go through in the next couple of years,” said Wold.