China 5,500. America 80. The yawning gap in U.S.- flagged vessels in international commerce compared to China underscores the urgent need for action to help the U.S. regain its position as an international maritime leader. If it passes in the new Congress, many in the industry are hoping the SHIPS for America Act will do exactly that.
Revitalizing U.S. shipbuilding and commercial maritime industries
On December 19, 2024, the office of Senator Mark Kelly (D-AZ) announced the introduction of the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, which was described as “comprehensive legislation to revitalize the United States shipbuilding and commercial maritime industries.”
“After decades of neglect, the United States has a weakened shipbuilding capacity, a declining commercial shipping fleet that is dwarfed by China, and a diminished ability to supply the U.S. military during wartime,” the press release said. “This historic bipartisan proposal would restore American leadership across the oceans by establishing national oversight and consistent funding for U.S. maritime policy, incentivizing domestic shipbuilding, enabling U.S.-flagged vessels to better compete in international commerce, rebuilding the U.S. shipyard industrial base, and expanding the mariner and shipyard workforce.”
Additional sponsors of the bipartisan, bicameral bill include Senator Todd Young (R-IN), Representative John Garamendi (D-CA-8), and Representative Trent Kelly (R-MS-1).
“We’ve always been a maritime nation, but the truth is we’ve lost ground to China, who now dominates international shipping and can build merchant and military ships much more quickly than we can,” said Sen. Kelly, a U.S. Navy veteran and the first U.S Merchant Marine Academy graduate to serve in Congress. “The SHIPS for America Act is the answer to this challenge. By supporting shipbuilding, shipping, and workforce development, it will strengthen supply chains, reduce our reliance on foreign vessels, put Americans to work in good-paying jobs, and support the Navy and Coast Guard’s shipbuilding needs. I’m excited to introduce this comprehensive, fully paid for legislation today alongside my Republican and Democratic colleagues and our partners representing all parts of the industry, and together we’re going to work to get this effort across the finish line.”
Major provisions of the SHIPS for America Act
According to the major provisions described in the announcement, the 344-page bill will:
- Coordinate U.S. maritime policy — by establishing the position of Maritime Security Advisor within the White House, who would “lead an interagency Maritime Security Board tasked with making whole-of-government strategic decisions for how to implement a National Maritime Strategy.” The bill also establishes a Maritime Security Trust Fund that would “reinvest duties and fees paid by the maritime industry into maritime security programs and infrastructure supporting maritime commerce.”
- Expand the U.S.-flag international fleet — by 250 ships in 10 years by creating the Strategic Commercial Fleet Program, which would “facilitate the development of a fleet of commercially operated, U.S.-flagged, American crewed, and domestically built merchant vessels that can operate competitively in international commerce.”
- Enhance the competitiveness of U.S.-flagged vessels in international commerce — by establishing a Rulemaking Committee on Commercial Maritime Regulations and Standards to “cut through the U.S. Coast Guard’s bureaucracy and red tape that limits the international competitiveness of U.S.-flagged vessels, requiring that government-funded cargo move aboard U.S.-flag vessels, and requiring a portion of commercial goods imported from China to move aboard U.S.-flag vessels starting in 2029.”
- Expand the U.S. shipyard industrial base, for both military and commercial oceangoing vessels — by establishing a “25 percent investment tax credit for shipyard investments, transforming the Title XI Federal Ship Financing Program into a revolving fund, and establishing a Shipbuilding Financial Incentives program to support innovative approaches to domestic ship building and ship repair.”
- Accelerate U.S. leadership in next-generation ship design, manufacturing processes, and ship energy systems — by establishing the U.S. Center for Maritime Innovation, which would “create regional hubs across the country.”
- Make historic investments in maritime workforce — by establishing a Maritime and Shipbuilding Recruiting Campaign, “allowing mariners to retain their credentials through a newly established Merchant Marine Career Retention Program, investing in long-overdue infrastructure needs for the U.S. Merchant Marine Academy, and supporting State Maritime Academies and Centers for Excellence for Domestic Maritime Workforce Training and Education.” The bill also makes “long-overdue changes to streamline and modernize the U.S. Coast Guard’s Merchant Mariner Credentialing system.”
A long list of endorsements
Over 80 organizations and maritime stakeholders have endorsed the SHIPS for America Act, and maritime leaders and stakeholders are excited about the potential ahead. Here are just a few of those cited in the announcement:
“… This comprehensive maritime policy initiative will ensure our country has the U.S.-flag shipping capability and the American mariners needed to both support the foreign policy and national security objectives of the Department of Defense and to enhance and protect our nation’s economic security by increasing the carriage of America’s foreign trade on U.S.-flag commercial vessels.” – R. Christian Johnsen, Chair, USA Maritime.
“… In today’s global threat environment, arguably the most perilous since the end of the Cold War, the United States must not only maintain the finest Navy, Marine Corps, and Coast Guard on the seas, but also ensure a robust U.S.-flag merchant marine and a resilient shipbuilding industrial base. These elements are crucial for safeguarding our national and economic security in the event of large-scale military conflict. The SHIPS for America Act addresses these vital considerations and reaffirms that America is, and always will be, a maritime nation.” – Mike Stevens, CEO, Navy League.
“…This legislation represents a significant step forward in strengthening the nation’s shipyard industrial base and establishing a comprehensive national maritime strategy. We are encouraged by its focus on bolstering American shipbuilding and ensuring a robust maritime sector capable of supporting our nation’s economic and national security. …” – Matthew Paxton, President, Shipbuilders Council of America.
“It is time to reclaim our maritime heritage and pursue an ambitious campaign to secure and strengthen our maritime supply chains. …” – Max Vekich, FMC Commissioner.
“… As America enters an era of increased global competition, it is the right time to make significant investments in our U.S.-flagged merchant marine. As we’ve learned throughout history, the U.S.-flag merchant marine can be depended upon by the United States military for assured access to sealift, and trusted by the American people for the secure and reliable movement of goods. This trailblazing legislation will make America an even stronger maritime nation for future generations. …” – James L. Henry, President and Chair, Transportation Institute.
“… The bi-partisan SHIPS for America Act takes many great ideas and organizes them into the whole-of-government effort needed to address a multitude of issues. No one individual or organization can achieve prosperity and security for the American people, but by working together, and with the proposed resourcing, we will accomplish the tasks set before us by this legislation and reach these goals.” – Roger Camp, President and CEO, American Shipbuilding Suppliers Association.
“… Revitalizing our nation’s capacity to build commercial ships will create thousands more good, community-sustaining jobs, and it will help make us safer and more resilient as we break our dangerous dependence on foreign-made vessels. …” – David McCall, President, United Steelworkers (USW).
“… In my 51 years of working in this industry, I have not seen any legislation as comprehensive and impactful as the Ships for America Act. …” – David Heindel, President, Seafarers International Union.
“Shipbuilding is the quintessential example of an industry vital to our national security that we lost to globalization — not because other countries have some magical ‘comparative advantage’ but because they cared about it and we did not. Thankfully, more thoughtful leaders are finally taking the necessary steps to reverse this damage. The Ships for America Act is the kind of industrial policy we need to embrace, not only for our national security, but also to drive domestic investment, innovation, and growth.” – Oren Cass, Founder and Chief Economist, American Compass. See a full list of endorsing statements from maritime leaders and stakeholders here.
