The Plan to Get America Building Big Ships Again

Key takeaways

The US maritime industry faces significant challenges, with only 80 US-flagged ships participating in global trade compared to over 5,500 from China.
The bipartisan SHIPS for America Act aims to revitalize US shipbuilding, targeting an increase to 250 ocean-going merchant vessels in ten years.
Reviving shipbuilding is framed as a national security issue, crucial for reducing dependence on foreign shipping and enhancing the US’s military readiness.
The podcast emphasizes the importance of skilled labor and a robust training ecosystem to support the shipbuilding industry's future needs.
Geopolitical tensions, especially with China, drive urgency in improving the US maritime capacity and securing trade routes.

Summary

The State of US Maritime Industry

The podcast kicks off by discussing the significant decline in the US maritime industry, noting that there are currently about 80 US-flagged ships in global trade compared to over 5,500 Chinese-flagged vessels. Senators Mark Kelly and Todd Young emphasize the importance of addressing this disparity as a matter of national security. They recount how the US shipbuilding industry has atrophied over the years, impacted by a lack of government support and international competition, particularly from China.

The SHIPS for America Act

A central focus of the conversation is the introduction of the SHIPS for America Act, a bipartisan proposal aimed at reviving the US shipbuilding industry. The senators outline the key components of the bill, which includes establishing a maritime security advisor position, setting up a trust fund for maritime security, and creating incentives for investing in US-flagged vessels. The goal is to increase the number of ocean-going merchant vessels to 250 within ten years and to enhance workforce training programs.

Bipartisan Efforts and National Security Implications

The discussion delves into the bipartisan support for the SHIPS for America Act, showcasing how both parties recognize the need for a robust maritime capacity to secure the US economy and national interests. Senators Kelly and Young interpret the rising economic and military challenges posed by China as a wake-up call, emphasizing the urgency for the US to enhance its shipbuilding capabilities to avoid reliance on foreign vessels, especially during crises.

Challenges and Future Outlook

As the conversation progresses, the senators address various challenges, including the need for skilled labor in shipbuilding and potential pushback from China regarding trade policies. They express confidence that substantial changes in US maritime policy are not just necessary but inevitable, given the geopolitical landscape. The episode concludes with an affirmation of the importance of implementing the SHIPS for America Act to foster a sustainable shipping industry.

Show notes

The US is a dominant force in a number of important industries, but it's been lagging behind in one crucial area: shipbuilding. Today, there are about 80 US-flagged ships involved in global trade, compared to more than 5,500 China-flagged vessels. The worry is that the US has been falling behind in this important component of international commerce, and that the country's entire economy could be at risk of being choked off. The SHIPS for America Act is a rare bipartisan proposal that aims to address these concerns by getting America to build commercial vessels again. But how exactly do you go about reviving an industry that's been all but moribund for decades? We speak to Senator Mark Kelly, a Democrat from Arizona, and Senator Todd Young, a Republican from Indiana, co-sponsors of the bill, about their plan.

Read More:
US Lawmakers Seek to Bolster Shipbuilding at Home
The Shipping Industry Is Getting a Slew of New Vessels—Right as Demand Cools

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