The maritime industry’s transition to greener fuels is losing momentum at the demand level, even as the availability of alternative energy sources continues to expand. According to ShippingWatch, green fuel specialist Seascale has found that biofuels currently account for less than 1% of total sales, with shipping companies largely holding back as they wait for clearer regulatory direction from the International Maritime Organization (IMO).
Supply Growing, But Demand Lags
Seascale’s findings paint a picture of a market caught in a holding pattern. While the supply side of alternative fuels — including biofuels and green methanol — is reportedly growing, demand from the shipping sector has not kept pace. As reported by ShippingWatch, the company describes green fuel demand as being at a near standstill despite mounting pressure on the industry to decarbonize.
The disconnect between supply growth and sluggish uptake points to a broader hesitation across the sector. Shipping companies appear reluctant to make significant commitments to higher-cost green fuels without firm and predictable regulatory frameworks in place.
IMO Regulations Still the Missing Piece
A key reason for the stalled demand, according to the ShippingWatch report on Seascale’s findings, is uncertainty around IMO regulations. Until clearer rules are established — including pricing mechanisms for carbon or fuel transition mandates — many operators appear to be adopting a wait-and-see approach rather than moving ahead with large-scale green fuel adoption.
This regulatory uncertainty makes it difficult for shipping companies to justify the cost premium associated with alternative fuels, especially when the rules governing future compliance remain in flux.
Does This Matter to You?
The slow uptake of green fuels has tangible implications across the maritime value chain. Those involved in fuel procurement, bunkering operations, or vessel management are operating in a market where demand signals for alternative fuels remain weak, even as suppliers continue building out capacity. This mismatch could influence pricing dynamics, contracting strategies, and infrastructure planning at ports and bunkering hubs.
For anyone monitoring the pace of maritime decarbonization — whether from a commercial, operational, or compliance perspective — the gap between green fuel availability and actual demand is a key indicator to watch. The trajectory of IMO rule-making in the coming months will likely be a determining factor in whether demand picks up or continues to stagnate.
ShippingWatch notes that Seascale previously reported growth in its first year of operations, with its portfolio now exceeding 3,000 ships.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: ShippingWatch
