SHIPS Act Targets Decline in U.S. Commercial Fleet

The United States commercial shipbuilding sector has contracted sharply, with annual output falling from approximately 20 vessels in the 1970s to just three ships today. This decline represents only 0.11% of global shipbuilding activity, according to data from the Center for Strategic and International Studies. The reduction in domestic manufacturing capacity has forced the U.S. to rely heavily on foreign yards for new construction and maintenance, a dependency that lawmakers argue compromises national security and economic independence.

In response, a bipartisan group of representatives, including Rep. John Garamendi, introduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act. The legislation aims to streamline regulatory processes, establish a presidentially appointed Maritime Security Board, and direct port fees into a dedicated maritime security trust fund. Garamendi stated that the current fleet size of fewer than 300 battleships and less than 200 U.S.-flagged commercial vessels is insufficient to sustain military operations in the Pacific or protect domestic trade interests.

Legislative Measures Target Regulatory Barriers

The proposed SHIPS Act includes specific mechanisms to incentivize domestic production, such as reducing bureaucratic red tape for maritime industry participants. It also seeks to create a structured framework for maritime security through the appointment of a senior presidential adviser. By funneling revenue from port fees into a trust fund, the bill intends to create a stable financial resource for infrastructure upgrades and workforce development, addressing what panelists described as a divorce between the American economy and its maritime system.

Global Competition Intensifies Maritime Pressure

China has expanded its share of global shipbuilding to more than 50%, assembling thousands of commercial vessels annually and securing commissions from countries worldwide. This dominance contrasts with the U.S. position, where a limited number of aging facilities struggle to meet demand. Rear Adm. Benjamin Nicholson noted that the scarcity of capable repair yards often requires ships to be routed to distant locations, such as the Panama Canal, for maintenance, highlighting a critical gap in domestic logistical support.

Workforce Concerns Amid Policy Shifts

The maritime industry supports millions of jobs and contributes over $5 trillion to the U.S. economy, according to panelists. However, recent administrative actions, including a waiver of the Jones Act requirements for U.S.-built and -crewed vessels, have raised concerns among students and engineers at institutions like Cal Poly Maritime Academy. These professionals fear that such waivers may undermine the pipeline of skilled labor necessary to sustain the industry, even as the SHIPS Act seeks to revive shipyards in coastal regions like the San Francisco Bay Area.