The world’s top-ten ocean carriers, accounting for 84% of global container ship capacity, have adopted alternative propulsion methods as part of efforts to reduce emissions. While all have committed to new fuels through direct ownership or long-term charter contracts, strategies remain divided between preferences for methanol and LNG (liquefied natural gas).
A survey reveals significant variation in how these carriers approach decarbonization. Some, like CMA CGM, embraced LNG early and later added methanol to their strategy, diversifying their fuel options. Maersk initially focused solely on methanol, citing its potential to help meet ambitious carbon reduction goals. It was the first carrier to operate a methanol-powered mainliner and recently converted an existing vessel, the MAERSK HALIFAX, to include methanol dual-fuel capabilities.
MSC, meanwhile, joined the alternative fuel shift later but pursued LNG at an unmatched scale. Currently, its order book is dominated by LNG-powered vessels, apart from a few smaller ships.
Notably, only CMA CGM and Maersk have adopted both LNG and methanol for their newbuilds, reflecting a multi-fuel approach.
Methanol Supply Agreements
Methanol has become a focal point for some carriers due to its potential as a green fuel. Maersk has been proactive in securing supply, signing agreements to cover approximately 50% of its forecasted methanol needs by 2027. Its latest deal with China’s LONGi Green Energy Technology, signed in October 2024, adds to earlier agreements totaling 3 million tonnes.
CMA CGM has also been advancing its methanol strategy. In 2023, the company signed a Memorandum of Understanding (MoU) with COSCO Shipping and Shanghai International Port Group (SIPG) to source green methanol in Shanghai. More recently, CMA CGM announced plans to establish Morocco’s Nador West Med Terminal as a hub for green fuels, including e-methane and e-methanol.
China’s Role in Methanol Development
China is positioning itself as a leader in green methanol production. COSCO Shipping has been focusing on methanol, signing a recent agreement with partners in South-East Asia for biomass-based green methanol production. Earlier, COSCO collaborated with SIPG, the State Power Investment Corporation (SPIC), and other entities to establish China’s first green methanol industrial chain.
China’s strategic planning and state-led coordination could secure it a prominent role in the future methanol market, supporting the global shift towards greener maritime fuels.
Industry Outlook
While alternative propulsion is now a priority across the industry, the lack of consensus on fuel preference highlights the complexity of long-term decarbonization strategies. Carriers are balancing innovation with logistical challenges, leaving the shipping sector’s green future both promising and unpredictable.
