China’s Control over Global Sea Lanes
China currently dominates the world’s sea lanes, boasting not only a formidable navy but also the largest merchant fleet globally, which includes around 5,500 ships and grows by hundreds each year. In stark contrast, the U.S. fleet has fewer than 100 ships, with an annual addition of up to five.
Today, only a small fraction—less than 0.4 percent, by some estimates—of the tankers and cargo vessels carrying goods to and from the U.S. are registered under the American flag. This decline in the U.S. commercial shipbuilding sector signals a looming crisis for both the economy and national security.
Urgent Action Required
Fortunately, President Trump is keenly aware of the urgency. He has prioritized the revival of America’s shipbuilding industry and on February 13, his administration unveiled a comprehensive maritime action plan aimed at restoring U.S. maritime supremacy.
The plan highlights that less than 1 percent of new commercial ships are constructed in the U.S., with only 66 shipyards in existence. It states that the U.S. lacks the necessary capacity to grow the domestic shipbuilding sector to meet essential national needs, emphasizing that maintaining an independent domestic shipbuilding industry is vital for national and economic security.
The Maritime Action Plan includes recommendations to enhance U.S. maritime capabilities, secure supply chains, and cultivate a skilled maritime workforce. Overall, it’s a much-needed strategy to revitalize U.S. commercial shipping, and it deserves recognition for its intent.
Role of Congress
However, as the plan points out, Congress plays a crucial role in this initiative. The proposed strategy involves tax incentives, innovative financing solutions, and new programs—all requiring Congressional approval and funding. Therefore, my colleagues and I are pushing for the SHIPS for America Act. This bipartisan legislation, which I was involved in introducing last year, aligns closely with the president’s vision and is integral to his plan.
The bill aims to allow U.S.-flagged vessels to effectively compete in international commerce by cutting through red tape, revitalizing the shipyard industry, and broadening the recruitment of seafarers and shipyard personnel. It also seeks to train a new generation of workers, promote domestic and international investments in maritime infrastructure, and provide necessary regulatory reforms to facilitate the swift construction of new shipyards.
At the heart of this legislation is a trust fund aimed at expanding the U.S.-flagged fleet to 250 ships by 2035. Additionally, the SHIPS Act would introduce investment tax credits intended to develop America’s shipbuilding industry for both military and civilian sea vessels.
Encouraging private investment in this sector hinges on the establishment of Maritime Prosperity Zones. These areas are inspired by successful Opportunity Zones from President Trump’s 2017 tax reforms and will significantly boost investment in communities essential for rebuilding our maritime industrial base.
From coastal areas to heartland locations, these zones will serve as the foundation for constructing production facilities and supply chains to bolster America’s maritime strength for many years ahead.
The decline of the U.S. commercial shipbuilding industry poses a future economic and national security crisis.
The SHIPS Act embodies Congress’ response to the urgent call by President Trump to reestablish U.S. maritime dominance. This legislation aims to equip the necessary legal authority and resources to implement the Oceans Action Plan. It enjoys bipartisan support from lawmakers in both chambers of Congress.
The announcement of the White House Oceans Action Plan should serve as a prompt for Congress to urgently pass relevant legislation. Reviving America’s shipbuilding sector may take time, yet, as President Trump acknowledges, it is crucial for the nation’s economic and national security.
It’s high time we resumed building American ships.
