In a fiery hearing titled “America Builds: Maritime Infrastructure,” the new Maritime Transportation Subcommittee Chairman Mike Ezell (R-MS) didn’t mince words. He asserted, “It is clearly critical that we must build a safer and more efficient system.” Ezell, fresh off the bat for the 119th Congress, hammered home the importance of the Jones Act, calling it the “bedrock and foundation of the nation’s shipbuilding industrial base.” He emphasized that the Jones Act maintains a pool of qualified American mariners crucial for transporting goods and supporting the military in both peace and war. However, he warned that the rise of global competitors has led to a decline in U.S. shipbuilding capacity. This is a wake-up call for the industry and policymakers alike.
Joe Rella, President of St. Johns Ship Building, Inc., representing the Shipbuilders Council of America, echoed Ezell’s sentiment but added a stark warning. He pointed out that when the Jones Act is not enforced or undermined by shortsighted policies, it can have detrimental effects on the broader domestic maritime industry and U.S. job creation. Rella cited a 2017 decision by the Customs and Border Protection (CBP) that allowed certain foreign-built, foreign-crewed, and foreign-owned offshore supply vessels to operate in violation of the Jones Act. This decision led to the cancellation of numerous construction contracts for new “Made in the U.S.A.” vessels, creating a vicious cycle where future opportunities may also be reconsidered or rescinded. Rella urged Congress to identify and close existing loopholes in the Jones Act, providing clarity on matters related to visa issues and heavy lift operations that are integral to the success and viability of this critical commercial market.
The hearing also shed light on the looming threat of China’s shipbuilding and naval capacity. Tom Reynolds, Chief Strategy Officer of Seasats, representing the Association for Uncrewed Vehicle Systems International, dropped a bombshell. China’s shipbuilding industry has a capacity approximately 232 times greater than that of the United States, enabling rapid expansion of its commercial maritime and naval capabilities. According to a 2024 report by the Congressional Research Service (CRS), China’s Navy is the largest in the world, with a battle force of over 370 platforms, including major surface combatants, submarines, and aircraft carriers. This fleet is expected to grow to 395 ships by 2025 and 435 by 2030. In contrast, the U.S. Navy had 296 battle force ships as of August 2024, with projections to slightly decrease to 294 ships by 2030. Reynolds also discussed autonomous maritime technologies, highlighting that existing regulations are not compatible with the state of technology in the maritime industry.
Brian Schoeneman, Political and Legislative Director of the Seafarers International Union of North America, representing USA Maritime, painted a grim picture. He said, “We aren’t failing, but we are on the brink of failure. In many ways, America’s maritime infrastructure is crumbling. Why? Because we, as a nation, have not made maritime a priority. Our strategic opponents have, and the proof is all around us.” Schoeneman’s remarks underscore the urgent need for a strategic overhaul of U.S. maritime policy.
The hearing also introduced the “Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act” (SHIPS Act), a bipartisan, bicameral legislation. This proposed legislation aims to establish a national maritime strategy to grow the entire maritime industrial base, from shipbuilding to maritime logistics to the merchant mariner workforce. The bill proposes the construction of a fleet of strategic commercial assets, including 250 vessels for international commerce and 100 tankers for the Tanker Security Program, among many other legislative proposals to better support the U.S. maritime industry.
The hearing underscored the urgent need for a strategic overhaul of U.S. maritime policy. The future of the U.S. maritime industry hangs in the balance, and the stakes are high. The hearing has sparked a debate on how to reinvigorate the U.S. shipbuilding industry and ensure its competitiveness in the global market. The SHIPS Act, if passed, could be a game-changer, providing a comprehensive strategy to grow the maritime industrial base. However, the industry must also address the regulatory challenges highlighted by Reynolds, particularly in the realm of autonomous maritime technologies. The U.S. maritime industry is at a crossroads, and the decisions made today will shape its future for decades to come. The hearing has set the stage for a robust debate on the future of U.S. maritime policy, and the industry is watching closely.
