The very first MaK dual-fuel engine left Caterpillar's facility in Rostock, Germany, to be shipped to the customer Mitsubishi Heavy Industries (MHI) in Japan June 5. Together, with three regular 12 M 43 C engines, the 12 M 46 DF will power the first of two cruise ships of the new generation ordered by German AIDA Cruises.

These innovative marine engines were developed by Caterpillar Motoren in Kiel, Germany, (Kiel Engine Center, KEC) and manufactured at the Rostock subsidiary. AIDA's new generation of ships also sets the standard when it comes to protecting the environment. An AIDA ship currently consumes only 3 liters of fuel per passenger per 100 kilometers. The new AIDA vessels will consume even less. The ships of the new AIDA generation are fitted with MaK dual-fuel engines, meaning they can also run on liquefied gas, depending on its availability in the port. The use of eco-friendly liquefied natural gas (LNG) substantially reduces CO2 and particle emissions.

"With these ships, AIDA will set new industry standards for the future both with regard to their new and innovative product features as well as in terms of protecting the environment. In 1996, AIDA sparked a revolution at sea with the relaxed cruising concept. We are convinced that the German cruise market will continue to grow and that we will provide further momentum for the market with our new generation of ships," said Michael Ungerer, President of AIDA Cruises.

Eoin Treacy's view Natural gas is an increasingly popular fuel for heavy machinery. This represents a significant growth story not least because of the commodity's cost, efficiency, increasing ease of transportation and relatively green credentials. Burlington Sante Fe is already testing natural gas fuelled locomotives and Union Pacific was quoted today as saying the technology is interesting. The advent of LPG fuelled ships represents an additional demand driver.

US natural gas futures have been ranging above $3.50 for the last month which also represents the region of the 200-day MA. A sustained move below that level would be required to question medium-term scope for continued higher to lateral ranging.

Caterpillar has been ranging in a volatile manner, mostly above $80, since 2011.It bounced from that area again this month and a sustained move below it would be required to question potential for continued ranging.

Both Cummins and Paccar specialise in natural gas drive trains. (Also see Comment of the Day on November 16th 2012). Cummins has been mostly rangebound since 2011 but has exhibited an upward bias over the last year. The share found support in the region of the 200-day MA from April and a sustained move below $105 would be required to question medium-term scope for additional upside.

Paccar has been trending persistently higher since June and is now closing in on the 2007 peak $60. While somewhat overbought in the short-term, a sustained move below $51 would be required to question medium-term upside potential.