New SHIPS for America Act seeks to revitalize US maritime industry

U.S. lawmakers have introduced a new act to bolster America’s commercial maritime industry and enhance its competitiveness amid China’s growing influence in the international shipping arena.

On December 19, 2024, Representative John Garamendi unveiled “the SHIPS for America Act” alongside Senator Mark Kelly, Senator Todd Young, and Rep. Trent Kelly.

As explained, the bill aims to revitalize the U.S. Merchant Marine to transport vital goods and military cargo during times of conflict while reinforcing American supply chains in peacetime.

Currently, about 80 U.S.-flagged ships are engaged in international commerce compared to over 5,500 China-flagged vessels. U.S. shipyards’ growing industrial base cannot produce oceangoing vessels at scale. In addition to this supply chain gap, there is an increasing demand for qualified mariners.

Specifically, the new legislation entails a comprehensive strategy to address these critical disparities by seeking to ensure national oversight and consistent funding for the maritime industry, enhance the competitiveness of U.S.-flagged vessels, rebuild the U.S. shipyard base, and expand efforts to recruit, train, and retain skilled mariners and shipyard workers.

It calls for establishing a national goal of expanding the U.S.-flag international fleet by 250 ships in ten years by creating the  Strategic Commercial Fleet Program, which would facilitate the development of a fleet of commercially operated, U.S.-flagged, American crewed, domestically built merchant vessels that can operate competitively in international commerce.

“For far too long, the United States neglected our maritime industries and the critical role they play in our national and economic security – this ends with the SHIPS for America Act…This bill represents the most substantial and comprehensive approach to have America compete and lead globally, and I’m proud to lead it alongside Senator Kelly, Senator Young, and Representative Waltz. Today, less than 200 oceangoing ships fly the American flag, the SHIPS for America Act will empower our shipyards and marine merchants to uphold our country’s status as a leader in the maritime industry,” Congressman Garamendi commented.

With China’s growing influence in the global maritime sector, strengthening the U.S. Merchant Marine is essential for maintaining U.S. dominance in international commerce, according to the act. In times of conflict, the U.S. Merchant Marine will be vital for transporting goods and military cargo, while in peacetime, it will fortify supply chains and ensure economic resilience. The introduction of this bill represents a strategic effort to rebuild the U.S. maritime industry, securing both national security and global competitiveness, the statement reads.

Among other things, the bill calls for a commercial cargo preference, requiring that within 15 years, 10% of all cargo imported into the United States from China be imported on U.S.-flagged ships. What is more, it says that a U.S.-flagged vessel shall be given priority at any U.S. port ahead of a waiting vessel of a foreign country.

“This legislation will create the favorable environment needed by the builders, investors, and technologists who stand ready to strengthen America’s maritime industry. This thoughtfully crafted bill combines the vibes of re-vitalization with tangible tax incentives that define reality for industry,” Austin Gray, Blue Water Autonomy Co-Founder and Chief Strategy Officer, said.

“The SHIPS for America Act is a transformative piece of legislation that will bolster the United States’ commercial competitiveness and military readiness on the high seas. Not only will this bipartisan bill protect existing jobs in maritime and allied trades, but it will lead to a renaissance of the American maritime workforce. The Maritime Trades Department, AFL-CIO offers our full support of this legislation,” Mark A. Clements, Jr., Executive Secretary Treasurer of the Maritime Trades Department, AFL-CIO, concluded.

Earlier this month, the U.S. government published a new action plan to steer its maritime sector toward a sustainable future. “An Action Plan for Maritime Energy and Emissions Innovation”, released this December, builds on the U.S. National Blueprint for Transportation Decarbonization to define actions that demonstrate and scale vessels and solutions to reduce costs and emissions in the maritime sector in the United States.

Both the new act and action plan confirm the USA’s determination to rebuild and enhance the national fleet and become one of the dominant (commercial) maritime powers in the world.