Impact of Dual-Fuel Ships

In this age of lowering shipping expenses while maintaining the same high-quality international cargo shipping services, carriers are taking a stand. One of the biggest contributors to rising freight shipping expenses is the current cost of diesel fuel needed for the ocean vessels. That is why many carriers are looking to use a new type of ship called dual-fuel vessels. In essence, the dual-fuel ship maintains two fuel sources for shipping, including deep-chilled liquefied natural gas or diesel fuel. During the past year, several carriers including Matson Inc and STX Marine, have ordered dual-fuel ships to replace some of their older ships. Matson Inc ordered the ships for their Pacific Ocean lanes. As the market for dual fuel ships continues to expand, these types of vessels could eventually dominate the international logistics industry.

Freight forwarders everywhere gladly support the use of dual-fuel ships to help the shipping industry adapt to the 21st century trading market. There are two main reasons for the emergence of dual-fuel ships. First off, there are new environmental regulations that carriers must adhere to now. Second, natural gas prices are considerably lower right now. One study suggested that fuel costs for dual-fuel ships could be 20% lower when compared to ships that only use diesel fuel. And if the cost of international trade is lower, then that might result in lower ocean freight shipping rates around the World. This could be great news for shippers. Keep an eye out for the growth of dual-fuel ships and their important impact in freight shipping.