LNG is emerging as the leading alternative fuel for container shipping, with orders for LNG-fuelled vessels surging amid stalled decarbonisation efforts at the UN's International Maritime Organization (IMO), reported New York's Journal of Commerce.

The number of LNG-capable container ships on order rose from 194 in late 2023 to 362 by mid-October, according to S&P Global Market Intelligence. These vessels now represent 40 per cent of the orderbook, up from 23 per cent, while methanol-fuelled ships remain at 15 per cent.

A senior carrier executive said LNG had already become the mainstream choice for new orders, citing improved well-to-tank data and the potential for fossil, bio and synthetic LNG pathways.

LNG can cut carbon emissions by up to 20 per cent, according to the American Bureau of Shipping. It is also more widely available than methanol, which remains costly and in short supply. Maersk recently shifted its next round of 50-60 vessels from methanol to LNG.

All LNG ships on order feature dual-fuel engines, allowing operators to switch between LNG and traditional bunkers. Usage varies, with some ships burning LNG only 5-10 per cent of the time, while others reach 50 per cent.

Dual-fuel container and vehicle carriers account for 79 per cent of the current orderbook, compared with 14 per cent for tankers and bulkers, according to the World Shipping Council.

LNG bunkering poses operational challenges. Tanks must be cooled to -162C, and re-cooling can idle ships for three days. Contracts with suppliers require one month's notice and carry high cancellation fees, said Solvens Advisory chief executive Nils Roche.

Despite these hurdles, LNG's flexibility and availability make it a viable transitional fuel. Solutions to reduce methane emissions are advancing, including a 93.8 per cent reduction achieved by a consortium led by Mitsui OSK Lines.