As global shipping grapples with the stalled decarbonization agenda at the International Maritime Organization (IMO), a new trend has emerged across the container shipping sector: liquefied natural gas (LNG) is fast becoming the alternative fuel of choice for carriers worldwide.
According to S&P Global Market Intelligence, the number of LNG-fueled container ships on order has surged from 194 in late 2023 to 362 by mid-October 2025. This means that 40% of newbuilds are now LNG-capable—up from 23% two years ago—while methanol-powered ships remain unchanged at 15%. Currently, 218 LNG-fueled ships are operational, representing 3.5% of the global fleet.
A senior carrier executive, who declined to be identified, said LNG had already become the “mainstream marine fuel” for new vessel orders even before the IMO delayed its net-zero framework. “Well-to-tank data is improving, methane slip will be addressed, and we see both fossil and bio-LNG as pathways toward decarbonization,” the executive noted.
A Practical Step Toward Net-Zero
LNG is increasingly viewed as a transitional solution—an interim fuel that reduces carbon emissions by up to 20% compared with traditional marine fuel, according to the American Bureau of Shipping. It also provides flexibility, as dual-fuel engines can operate on both LNG and conventional bunkers, allowing carriers to switch fuels depending on market conditions and availability.
That flexibility, combined with LNG’s wider global availability compared with methanol and its relatively modest cost premium (around 25% higher than low-sulfur fuel oil), makes it a practical option for major carriers such as Maersk, which recently pivoted from methanol to LNG for its next round of vessels due to limited methanol supply.
Industry Setback, LNG Momentum
The IMO’s decision to delay its net-zero framework was described as a “major setback for the maritime industry” by Patrick Verhoeven, Managing Director of the International Association of Ports and Harbors. Despite this, container lines have continued advancing their own decarbonization plans.
Dual-fuel vessel orders—mostly container ships and vehicle carriers—now account for 79% of the global order book, according to the World Shipping Council, highlighting a significant industry shift led by the largest operators.
Methane Slip and Operational Challenges
While LNG offers clear environmental and economic advantages, it also presents technical hurdles. The fuel must be stored at -162°C, and ships must retain a minimum amount of LNG to avoid costly re-cooling periods. Additionally, LNG bunkering contracts require longer notice periods and come with higher cancellation penalties compared to traditional marine fuel.
Industry efforts are underway to tackle methane slip—a key environmental concern. A consortium led by Mitsui O.S.K. Lines has achieved a 93.8% reduction in methane emissions from LNG-fueled vessels through advanced catalysts and engine innovations.
Looking Ahead
Despite operational constraints, LNG’s scalability and compatibility with bio- and synthetic LNG make it an appealing choice for carriers seeking immediate, measurable emission reductions. As regulatory uncertainty continues, LNG stands out as the most mature and flexible alternative fuel, offering a viable bridge toward the industry’s long-term zero-carbon goals.
