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The SHIPS for America Act: What It Does and How It Could Change America’s Position in Global Shipping

As Americans prepare to celebrate the Fourth of July, another effort to reclaim independence is underway. This time, the focus is on maritime shipping, the backbone of global commerce. The SHIPS for America Act, now advancing in Congress, is a bold strategy to rebuild U.S. maritime strength and reduce dependence on foreign-owned shipping networks that dominate international trade.

Nearly 80 percent of U.S. international trade moves by sea.

Yet close to 99 percent of that cargo is carried by foreign-owned vessels, many operating through global alliances that control routes, rates, and capacity. China, which now commands 232 times more shipbuilding capacity than the U.S., is the clear leader. American shipyards today produce just 0.04 percent of the world’s oceangoing commercial vessels.

In the 1950s, more than 1,200 U.S.-flagged ships operated in international trade. That number has collapsed to under 100. The SHIPS Act aims to reverse the decline by launching a Strategic Commercial Fleet of 250 U.S.-built, U.S.-flagged, and U.S.-crewed vessels by 2030. These ships will include container vessels, tankers, RoRos, bulk carriers, and heavy-lift ships that are all designed for both commercial and national security use.

To guarantee demand for the new fleet, the bill imposes cargo mandates.

All U.S. government cargo would be moved on U.S.-flagged vessels. Within 15 years, 10 percent of all imports from China must be carried on American ships. By 2035, 10 percent of U.S. crude oil exports must ship under a U.S. flag, rising to 15 percent of LNG exports by 2043.

The shipping industry is already responding. South Korea’s Hanwha is doubling its workforce at its Philadelphia shipyard, backed by federal subsidies. French carrier CMA CGM has pledged 20 billion dollars toward building up U.S. shipbuilding infrastructure.

The SHIPS Act would also establish a Maritime Security Trust Fund, modeled after the Highway Trust Fund, using customs duties and tariffs to fund maritime programs outside of the annual appropriations process. A new Maritime Security Advisor in the White House and a Maritime Security Board would coordinate the national maritime strategy across agencies.

Shippers should expect this to ripple through freight markets.

New mandates and compliance costs will increase carrier expenses, and many will pass those costs along through general rate increases, new surcharges, or stricter contract terms. The effects will vary depending on the carrier’s exposure to U.S. requirements and their alliance structures.

pastedGraphic.pngShippers must adjust their procurement strategy. It is not enough to chase the lowest rate. Cost comparisons must include service quality, reliability, capacity, demurrage terms, and fee exposure. A low rate from a carrier facing heavy compliance burdens may cost more in the long run.

The SHIPS Act represents a shift in how the U.S. engages with global trade. It combines investment in domestic industry with a clear protectionist edge. The message is clear. The U.S. is reasserting control over its maritime future, and the rules of the game are changing fast.

Marc Holder
Marc Holderhttps://www.mts-logistics.com
Marc has a degree in Business Management from the University of Texas at Dallas. He began his career in 2013 at Evergreen Shipping, where he worked as a Vessel Coordinator, gaining expertise in ocean shipping. Transitioning to the U.S. Imports/Exports sales team in the Gulf Region, Marc showcased dedication and industry knowledge. Since September 2019, he has worked at MTS Logistics as a Sales Executive. He was recently appointed as Vice President of Sales, a recognition of his leadership and commitment to customer service. In his free time, Marc enjoys outdoor activities with his family, hiking, and playing basketball.
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