Dredging’s vessel orderbook - from strong activity in China to continued fuel uncertainty
Dredger at sea. Credit: Pixabay
Demand for trailing suction hopper dredgers
S&P Global Market Intelligence data reveals there are 21 trailing suction hopper dredgers (TSHDs) on order, which will enter into service in 2025 (12), 2026 (6), 2027 (2), and 2028 (1). These vessels will add 154,238m3 of hopper capacity to the global dredger fleet.
There are also 11 cutter suction dredgers (CSDs) on order, with an influx of 10 vessels scheduled to come online in 2025, which are all going to the same owner in Asia.
Speaking to CEDA Industry News (CIN), Ines Nastali, Senior Supply Chain Analyst, S&P Global Market Intelligence, noted that TSHDs remain the most common type of dredger within the self-propelled category, adding: “Given its versatility, it’s no surprise to see this trend continued in order numbers.”
Future fuel uncertainties
Ship owners are also continuing to factor decarbonisation and future fuels into decision making, as vessels ordered today are very likely to be in operation far beyond the IMO 2050 deadline for achieving net zero.
It’s likely this has resulted in operators holding back on ordering, looking to others to take the lead, particularly as the industry awaits greater regulatory clarity. It remains to be seen whether the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC) 83 – and the MEPC Extraordinary Session later this year – provide the confidence required to boost investment into zero fuels. The IMO Net-Zero Framework adopted at these sessions is the first of its kind in combining mandatory emissions limits and GHG pricing. It is likely to be formally adopted in October this year before entry into force in 2027.
Adoption of dual-fuel options
S&P data shows all vessels currently on order will run on distillate fuels, with marine gas oil the fuel of choice for the dredging industry. However, there are three trailing suction hopper dredgers on order that are dual-fuel vessels, which can also run on biofuel or methanol. This is a continuing trend from last year, with no alternative fuels being chosen as the main fuel.
This hesitancy around zero fuels is reflected in the shipping industry more widely, with the International Chamber of Shipping Maritime Barometer Report 2024-2025 finding maritime leaders were “significantly more bullish towards tried-and-tested fuel options” such as LNG, as opposed to zero and near-zero alternative fuels. The focus on dual-fuel options is also on display throughout the industry, with Lloyd’s List reporting dual-fuel vessel deliveries are set to peak in 2025, with 292 ships delivered by the end of this year, up from 198 in 2024. The UK also welcomed the world’s first dual-fuelled ammonia-powered vessel to its shores earlier this year, with the arrival of the Singapore-flagged vessel Fortescue Green Pioneer designed to demonstrate the viability of ammonia as a sustainable marine fuel.
There was also significant investment in dual fuel options last year, including DEME’s Yellowstone, which launched as the world’s largest fallpipe vessel with a payload of 37,000 tonnes. Yellowstone was the first vessel in the DEME fleet to be prepared for green methanol and the first dual-fuel fallpipe vessel in the industry, with DEME noting this was in line with its “vision to become carbon neutral by 2050” at the naming ceremony.
Likewise, Boskalis has one large trailing suction hopper dredger under construction at Royal IHC that is being prepared for the use of green methanol and will be put into use mid-2026.
Local markets – and increased role of China
Most dredgers are being built either for use locally or where the ship owner is based, while some 24% of dredgers on order for the international market are being built in mainland China, according to S&P. This strong performance in China is likely a reflection of rapid industrialisation and port development projects in the country, as well as a possible focus on boosting domestic opportunities at a time of trade tensions.
It also represents a shift from last year, when S&P data showed all current suction dredgers on order were being built in Bangladesh, with most of the remaining dredgers built in China or the Netherlands.
Order numbers, however, remain in line with 2024, when orders were also placed early in the year. S&P Global data shows that in 2024, 10 dredgers were recycled, with two recycled this year. As a result, there is something of a fleet renewal programme taking place, with vessels being recycled having been built in the 1960s to 80s. Dredgers still tend to operate longer than the average merchant ship, with the average fleet age being 31 years, compared to 15 years for other vessel types such as containers, tankers and general cargo ships.
This renewal will no doubt take fuels into account, despite owners remaining uncertain about which alternative fuel to invest in at a time of market volatility and multiple options, including biofuel, wind power, ammonia, hydrogen, methanol, and LNG, which poses challenges to owners, explains Nastali: “The emission regulations amendments/evolution make it even more challenging for them to invest in a technology, which may not support long-term IMO initiatives – methane slip being one of them.”
In the meantime, because of a lack of regulatory clarity for the dredging sector, an initial focus for the industry will be on equipping premium dredgers operating in developed countries with energy-saving devices, in response to well-established local limitations on emissions, added Nastali.
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