Senators Mark Kelly (D-AZ) and Todd Young (R-IN) introduced the SHIPS for America Act on December 19 in response to what they believe is an urgent need to revitalize the U.S. maritime industry. The act would support the U.S. Merchant Marine, expand the U.S.-flagged international fleet, and expand shipyards. The bill has widespread and bipartisan support.
Revitalizing the Maritime Industry
Senators Kelly and Young introduced the bill to reverse what they see as the country’s neglect of its maritime industry. They believe the industry needs support and expansion to improve national security and economic security.
One major issue is the limited number of U.S.-flagged ships involved in international commerce. There are currently only 80 American vessels involved in international trade compared to China’s more than 5,500.
The source of the problem is in U.S. shipyards. The current industrial shipyard base is inadequate for building and launching many more vessels. The industry does not have enough infrastructure. It also lacks enough skilled workers.
The bill, the Senators hope, will make America more competitive in international commerce. It will strengthen the maritime industry, Merchant Marine, and maritime supply chain. The U.S. Navy has also struggled in recent years to produce more ships and maintain an adequate fleet. The bolstering of shipyards that would occur if the bill passed would help the Navy improve and expand its fleet.
What Would the SHIPS Act Do?
The overall goal of the act is to support and expand the U.S. maritime industry. It would do this through several measures. The bill, if passed, would:
- Create a White House Maritime Security Advisor and Maritime Security Board. Their role would be to manage the implementation of a National Maritime Strategy
- Establish a Maritime Security Trust Fund to invest in infrastructure that supports maritime commerce and security programs
- Create the Strategic Commercial Fleet Program with a goal of expanding the fleet of U.S.-flagged ships to 250 over the course of ten years
- Establish a Rulemaking Committee on Commercia Maritime Regulations and Standards to reduce bureaucracy and improve the competitiveness of the American fleet
- Require that all government cargo and a minimum amount of commercial cargo coming from China be shipped by U.S. vessels
- Expand the base of shipyards in the U.S. for building both commercial and military vessels through a 25% tax credit for shipyard investments
- Create a Shipbuilding Financial Incentives program to promote innovations in shipbuilding and repair
- Establish the U.S. Center for Maritime Innovation to promote advances in ship design and energy systems and manufacturing processes
- Establish and invest in existing programs and campaigns to establish a larger, stronger, and more skilled maritime workforce
The SHIPS Act has widespread support within the maritime industry and is being introduced by bipartisan senators. It remains to be seen whether the legislation will be passed and signed into law, but if it does, it would mean major changes for the U.S. maritime industry.