Ethanol-Fuelled Vessels Enter Dry Bulk Orderbook As Owners Seek Fuel Flexibility

These questions have become more relevant. Although the first methanol/ethanol-capable dry bulk vessels entered the orderbook in 2023, they gained popularity from May 2026, and the number increased to 19 vessels by September. The wider trend is equally interesting. LNG accounted for most of the alternative-fuel vessels in the dry bulk orderbook four years ago. Subsequently, methanol gained ground in 2023, and ammonia came into the picture in 2024.

This distinction matters because shipowners still face uncertainty over which alternative fuel will offer the best combination of price, availability and regulatory benefits. Some owners and charterers are addressing this unpredictability through fuel-flexible newbuildings. The 19 methanol/ethanol-capable vessels currently in the dry bulk orderbook are linked to Vale’s move towards fuel-flexible ore carriers, with multiple shipowners ordering these vessels against long-term employment with the miner. Vale’s wider programme involves up to 30 large ore carriers capable of using methanol or ethanol.

Others shipowners continue to favour efficient conventional vessels. Pacific Basin replaced four planned methanol dual-fuel Ultramax newbuildings with conventionally fuelled vessels. The change reduced the reported programme cost from $186 million to $156.8 million, although the company retained options for two dual-fuel vessels. The company partly attributed the decision to uncertainty surrounding the IMO Net-Zero Framework. The decision highlights the trade-off between paying more for future fuel flexibility and investing in efficient conventional tonnage today.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →