Rebuild the Merchant Marine
Given China’s aggressive naval growth and modernization, the U.S. Merchant Marine must be reformed and integrated into the Sea Services.
By Commander Sonha Gomez, U.S. Coast Guard
October 2024| U.S. Naval Institute
President Franklin Delano Roosevelt called the U.S. Merchant Marine the nation’s “fourth arm of defense,” reflecting its critical contributions during peace and war—from enabling U.S. seaborne trade to providing logistics support for military contingencies to steaming into harm’s way. Unfortunately, today’s Merchant Marine is underfunded and undermanned.
The current state of the U.S. Merchant Marine fleet is a vulnerability. In 2023, the fleet had 177 oceangoing, self-propelled vessels of 1,000 gross tons and above, of which 153 were militarily useful and 93 were eligible for Jones Act service, down from 193 in 2000.1 The Jones Act requires vessels participating in domestic trade to be built in the United States, owned by U.S. citizens, and crewed by U.S. mariners.
By contrast, according to the U.N. Conference on Trade and Development’s Handbook of Statistics 2023, China owns nearly 6,000 Chinese-flagged vessels of 1,000 gross tonnage and above and another 2,800 registered under foreign flags.2 Recently, the Office of Naval Intelligence assessed China’s shipbuilding industry as having a production capacity 232 times that of the United States, or almost 50 percent of total global shipbuilding capacity.3
Grow U.S. Shipbuilding Capacity
Increasing the Jones Act–eligible merchant fleet starts with U.S. shipbuilding capacity. The current rate of U.S. production is approximately five ships per year, which is not globally competitive.4 There are two ways to grow this capacity: Optimize existing shipyards or build new ones to produce commercial oceangoing ships. Unfortunately, most U.S. yards currently lack the infrastructure, such as deep channels and large dry docks, to build or maintain and repair these ships.
In 2021, the Bipartisan Infrastructure Law delivered $1.2 trillion to be invested in the nation’s infrastructure, with $17 billion earmarked for port infrastructure and waterways. In 2023, the Maritime Administration announced $20.8 million in grants to 27 small shipyards through the Small Shipyard Grant Program.5 And recently, the Department of Transportation announced $500 million for ports available through the Port Infrastructure Development Program.6 Yet, funding was not directed to U.S. shipyards that build large vessels, and some of these shipyards continue to operate at a loss.7
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