On April 9, US president Donald Trump signed an executive order that aims to revitalise US shipbuilding and strengthen the US-flag fleet.
The order directs the creation of a maritime action plan to boost the USA’s maritime industries. During the joint address to congress, Mr Trump vowed to “resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding.” He added: “We used to make so many ships. We don’t make them anymore very much, but we’re going to make them very fast, very soon. It will have a huge impact.”
World Shipping Council (WSC) president and ceo Joe Kramek welcomed the US administration’s plan to rebuild American shipbuilding via calculated public-private investment, workforce development, and targeted incentives to rebuild shipbuilding capacity.
“As we’ve said previously, revitalising the US maritime industry will require a comprehensive, realistic, and sustained strategy developed by the administration and congress and enacted through legislation,” said Kramek. “The executive order outlines several encouraging elements that reflect a serious focus on rebuilding the American maritime industry.”
The USA’s shipbuilding industry has languished for decades. Today, 0.2 percent of the world’s ships are built by the USA. China builds the lion’s share with 74 percent, according to the White House.
However, using US shipyards alone to bring about a massive resurgence in the US fleet seems fanciful in the short to medium term. Mr Trump said to Congress that he may turn to other countries in order to plug the gap.
Redressing China’s domination of the maritime market is a focus point of the Trump administration. In March, the US Trade Representative (USTR) has proposed large fees for vessels operated by Chinese ship operators or those built in China that dock at US ports.
