The SHIPS for America Act, introduced on December 19, 2024, aims to revitalize the U.S. shipbuilding and commercial maritime industries. It addresses concerns over the declining U.S. shipbuilding capacity, the shrinking U.S.-flagged commercial fleet, and reduced military support capabilities, particularly in comparison to China’s expanding maritime dominance.
A National Maritime Strategy is proposed, featuring the establishment of a Maritime Security Advisor within the White House and a Maritime Security Board to coordinate policies across government agencies. The act also includes provisions for consistent funding, domestic shipbuilding incentives, and a Maritime Security Trust Fund to reinvest industry fees into maritime security and infrastructure.
A core goal of the legislation is to expand the U.S.-flag international fleet by 250 ships over ten years through the Strategic Commercial Fleet Program. This initiative seeks to boost employment in shipbuilding and shipping, reduce reliance on foreign vessels, and enhance supply chain security. The bill has bipartisan support in Congress and endorsements from various maritime industry organizations.
The U.S. commercial fleet has drastically declined from 2,926 ships over 1,000 deadweight tons in 1960 to just 185 ships in 2024. Several factors have contributed to this decline:
- Deindustrialization: A shift away from heavy manufacturing and shipbuilding has reduced demand for domestic shipping.
- Globalization: Reliance on foreign-flagged ships with lower operating costs has decreased the competitiveness of U.S.-flagged vessels.
- Policy & Regulation: The Jones Act, requiring U.S.-built and operated ships for domestic shipping, has struggled to sustain a robust fleet due to high compliance costs.
- Shipbuilding Capacity: The U.S. has fewer shipyards capable of constructing large commercial vessels compared to China, South Korea, and Japan.
Conversely, China’s commercial fleet has surged to 9,222 ships in 2024, driven by:
- Industrial Expansion: Rapid industrialization and export-led growth requiring massive shipping capacity.
- Government Support: State subsidies, financing, and strategic planning bolstering shipbuilding and shipping.
- Global Market Presence: China’s growing role in international trade necessitating a strong fleet.
Other nations, such as the UK (1,054 ships), maintain fleets that reflect historical maritime influence, European trade dynamics, and a focus on high-value shipping sectors.
While the SHIPS for America Act presents a comprehensive approach to restoring U.S. maritime leadership, its success depends on political feasibility, funding allocations, and industry engagement.