Cameron Oul Haq, Senior Vice President of LR Ports Advisory, highlighted the importance of preparing ports for fuel transfer in the shipping industry in the introduction of a report, acknowledging that this transfer has already begun, but the demand for ships and the readiness of the supply chain are progressing at different speeds.
Challenges and Opportunities in Port Preparation
Oul Haq stated that the gap between demand and supply creates both risks and opportunities. Ports that are waiting for certainty may fall behind their competitors who are currently building safety frameworks, licensing regimes, and partnerships. Meanwhile, ports that invest early may face assets that are never fully utilized.
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The report emphasizes that readiness for fuel transfer is largely determined before the arrival of the first ship. According to LR data, successful operations of alternative fuels are built on risk assessment, regulations, workforce training, and collaboration among port authorities, shipowners, fuel suppliers, emergency services, and classification societies.
Status of Alternative Fuels
The report points to an imbalance in the alternative fuel market. LNG is recognized as the most sought-after alternative fuel, benefiting from an almost global supply network. Methanol has entered commercial use but is only available in a limited number of major hubs. Ammonia has reached a significant milestone with its first commercial fueling operation, while the use of hydrogen has largely been limited to demonstration projects and short-term applications.
In the shipping sector, the ordering of ships has significantly outpaced investment in ports. LR analysis shows that by January 2026, 1,942 ships will be capable of fueling with alternative fuels, including 1,259 ships with LNG capability and 385 ships with methanol capability. In comparison, only 25 ports are actively offering methanol fueling.
The report also notes the growing commercial advancements in methanol. Singapore has licensed methanol suppliers since January 2026, and Shanghai recorded a bi-methanol transfer of 8,016 tons in August 2026.
Fuel Supply Challenges
However, the real challenge currently is not the technology for fuel supply, but the supply itself. The announced low-carbon methanol production capacity in the industry is expected to reach 61.8 million tons by 2031, but the expected renewable capacity is only between 6 to 12 million tons. For this reason, bottlenecks have shifted upstream.
For ports, the critical issue is often the "last mile" between fuel production and its delivery to ships. Costs related to fueling ships, emergency coverage, access to the dock, and licensing frameworks are incurred before sufficient ship traffic exists to create sustainable returns.
Ultimately, the report emphasizes that there is no single global pathway emerging for port preparation. Instead, different regions and individual ports are pursuing varied strategies based on local priorities, business patterns, and risk tolerance.
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