Visit Our Sponsors |
A new bill introduced by a bipartisan coalition in Congress would look to expand the number of U.S.-flagged vessels by 250 ships in 10 years, as part of larger bid to fight back against China's growing maritime influence.
Dubbed the "SHIPS for America Act," the bill would create a maritime security advisor position in the White House, establish a 25% tax credit for domestic shipyard investments, allow U.S.-flagged commercial ships to move to the front of the line at ports, and spin up manufacturing and energy infrastructure at regional hubs across the country. It would also require 10% of all U.S. import cargo from China to arrive on vessels built, flagged and crewed in the U.S.
Read More: Secretary Buttigieg Urged to Embrace Domestic Green Shipbuilding
“For far too long, the United States neglected our maritime industries and the critical role they play in our national and economic security," said Rep. John Garamendi (D-CA), one of the bill's four co-sponsors between the U.S. House and Senate. According to a December 19 release from Garamendi's office, there are roughly 80 U.S.-flagged ships engaged in international trade right now, compared to 5,500 China-flagged vessels. Speaking at an event in September, Republican Rep. Mike Waltz — who has since been tapped to be President-elect Donald Trump's national security advisor — warned that China could use its maritime advantage to "turn off our entire economy," by using the ships in its expansive commercial fleet as "levers of geopolitical influence." Waltz also pointed to China's upper hand in infrastructure, with the country boasting the largest shipbuilding capacity in the world, and taking in more than 1,500 new orders for vessels in 2023.
The bill has already garnered support from a wide range of stakeholders across the U.S. maritime industry, including ship operators, labor groups, active military, veterans and more. It would also include a trust fund that would reinvest various fees paid by the industry to fund maritime security programs and new infrastructure.
RELATED CONTENT
RELATED VIDEOS
Timely, incisive articles delivered directly to your inbox.