As IMO Emissions Showdown Approaches, Dual-Fuel Ship Orders Slow

 

Strong interest in building alternative-fueled tonnage helped drive an ordering boom at shipyards in the early months of 2025, but with uncertainty about the path ahead for emissions regulation, that activity has cooled. According to DNV's statistics, only 14 alternative-fueled ships were ordered in September, and none at all in August. 

"Following a record-breaking first half of the year, zero new orders in August and relatively low activity in September signal a clear slowdown in the alternative-fueled market in the third quarter," said Jason Stefanatos, Global Decarbonization Director at DNV Maritime. 

The newbuild market as a whole is weaker than it was early in the year, and costs are rising, he said. But decisions about new alternative-fueled ships are also being put off because of the uncertainty surrounding emissions regulation at IMO. The tentative deal agreed in April 2025 was approved by a strong majority of member states, but support was far from a unanimous. The agreement's critics - led in part by the United States, which has changed tack on climate policy since the beginning of the Trump administration - are pressing for changes, or even a pause on implementation for a rethink of the terms. 

Given the renewed uncertainty over the future direction of the regulatory environment, it may be no surprise that owners are holding back until after the next IMO MEPC meeting in October. Of those few who are still buying dual-fuel ships in the interim, the majority are ordering LNG-fueled propulsion, DNV's numbers show. 

"Uncertainties around the IMO’s Net-Zero Framework, including lifecycle assessment factors for certain fuels, are prompting many owners to adopt a ‘wait and see’ approach to new orders. It is, therefore, essential that the industry receives greater regulatory clarity in the coming months," Stefanatos said. 

Top image: An LNG-fueled PCTC at Tianjin, 2024 (file image courtesy China News Service / CC BY SA 3.0)