Do You Know the 'Lucky Tanker' That Escaped Before the Hormuz Blockade?... 'LNG Dual-Fuel Vessels' Rise Amid Crisis

Passing Through the Strait of Hormuz Just Before the Crisis
VLCC "Eagle Vellore" to Arrive at Daesan Port on March 20

Uses LNG Alongside Bunker Oil
Emphasizing Eco-Friendliness and Fuel Flexibility
Shipping Companies Expected to Incr

#. The oil tanker "Eagle Vellore," which escaped just before the Strait of Hormuz was blocked, is now heading toward Daesan Port in Seosan, South Chungcheong Province. Having departed from Al Basrah Port in southern Iraq and passed through the Strait of Hormuz at the end of February, the Eagle Vellore is scheduled to arrive at Daesan Port with its crude oil cargo on March 20. Nicknamed the "lucky tanker," this Very Large Crude Carrier (VLCC) was built by Hanwha Ocean in 2023 and features dual-fuel propulsion. In addition to bunker fuel, it also uses liquefied natural gas (LNG). The Eagle Vellore's good fortune is attributed both to the resourcefulness of its crew in handling crises and to the superior performance of its dual-fuel propulsion system.

As the Middle East crisis disrupts oil supplies, demand for ships utilizing dual fuels is expected to increase. Growing instability in the supply of bunker fuel, which is traditionally used by ships, is driving more shipping companies to seek vessels that also use eco-friendly fuels.

According to Clarkson Research, a UK-based shipbuilding and shipping market data provider, orders for LNG dual-fuel vessels from Korean shipbuilders have increased each year, from 60 ships in 2023 to 70 ships in 2024 and 92 ships last year. As of March this year, 15 ships have already been ordered, maintaining this strong trend. An industry insider stated, "Not only crude oil tankers but also container ships are seeing increased demand for LNG dual-fuel vessels as part of the replacement cycle."

With the International Maritime Organization (IMO) tightening environmental regulations, orders for eco-friendly ships have been on the rise. Dual-fuel propulsion ships, similar to hybrid cars, use two or more types of fuel, enhancing engine fuel flexibility. Because they use eco-friendly fuels, these vessels can avoid certain regulations, and since their fuel is less directly linked to crude oil prices, they offer cost advantages as well.

This year, due to the crisis in the Middle East, orders for dual-fuel propulsion vessels are expected to increase further. Bunker fuel (VLSFO), the main ship fuel, is priced in line with crude oil, meaning that when tensions rise in the Middle East, its price surges as well. As of March 16, the global average price of bunker fuel was $1,018.50 per ton, a sharp increase from $604.50 per ton on March 2. This marks the highest level since 2022.

As bunker fuel prices spike with volatility, shipping companies are expected to place more orders for dual-fuel propulsion vessels to avoid losses. Dual-fuel vessels operate not only on traditional fuels but also on eco-friendly options such as LNG. An industry official commented, "Even amid existing eco-friendly regulations, dual-fuel propulsion vessel orders have remained strong, and the Middle East crisis is expected to further accelerate this trend."

This content was produced with the assistance of AI translation services.