America is breaking its own maritime law — and China knows it
Mar 13, 2025
President Trump's announcement to Congress that he will create a new White House Office of Shipbuilding marks a long-overdue recognition of America's maritime crisis. This initiative couldn't come at a more critical time: just last December, Spain denied entry to two U.S.-flagged vessels over allega
tions that they carried military cargo for Israel.
This incident reveals a deeper problem: The U.S. no longer controls enough of its own shipping capacity to enforce its trade and security interests independently. If we had a robust merchant fleet, civilian ships that carry commercial cargo, this disruption would be an isolated diplomatic spat, not highlighting a critical vulnerability.
This shortage exists because we have allowed our commercial fleet to diminish despite clear legal requirements. The Merchant Marine Act of 1936 explicitly requires that the U.S. maintain “a merchant marine sufficient to carry a substantial part of the waterborne export and import foreign commerce.” This legal mandate is a national security imperative that we have systematically abandoned.
The contrast between U.S. and Chinese commercial maritime power is staggering, leaving the U.S. reliant on foreign shipping in an increasingly contested global environment.
America's merchant fleet has collapsed to fewer than 200 U.S.-flagged vessels, while China has deliberately built a commercial armada exceeding 7,000 ships. More than a numerical advantage, it represents a fundamental global influence and economic leverage shift.
Rear Adm. James Watson’s “ZERO POINT FOUR: How U.S. Leadership In Maritime Will Secure America’s Future,” notes that China's merchant fleet carries about 20 percent of global trade, while U.S.-flagged vessels move less than 2 percent of American overseas trade despite our economy generating nearly a quarter of global GDP. More concerning, China's 130+ major shipyards can produce more ships annually than America's mere five large shipyards could build in a decade.
China's strategy extends far beyond shipbuilding. Beijing has created an integrated network of Chinese-built vessels, Chinese-owned shipping companies, Chinese bank financing, and Chinese-controlled ports. Chinese firms now operate terminals at 96 overseas ports, including 36 of the world's top 100.
Most concerning, China's state-controlled LOGINK platform manages data for half of global container volume, giving Beijing unprecedented visibility into supply chains. This maritime dominance undermines our military readiness, creates dangerous dependencies on potential adversaries and weakens American diplomatic leverage when our power projection relies on foreign shipping companies.
The economic security implications are equally concerning. American businesses pay a “China premium” of billions annually to foreign shipping companies that control our trade routes. Meanwhile, Chinese firms can leverage their dominant position to obtain preferential access to ports, resources, and markets worldwide.
There is a solution. Just as the CHIPS and Science Act recognized semiconductors as critical infrastructure requiring national investment, the bipartisan Shipbuilding and Harbor Infrastructure for Prosperity and Security Act provides a framework to address America's maritime crisis. The administration has now signaled its commitment to this vital issue and resurrected the American shipbuilding industry.
This announcement represents a critical first step but must be followed by comprehensive action. Congress must now take three urgent actions:
Shipbuilding Reform and Investment: Coordinating with the new White House Office of Shipbuilding, Congress must expand American shipbuilding capacity through direct investment and reformed contracting models, similar to successful initiatives in semiconductors.
Rebuilding the Maritime Workforce: America faces a shortage of over 1,800 skilled mariners. If the U.S. activated its entire reserve fleet today, we wouldn't have enough trained sailors to crew the ships. Congress must expand training pipelines, offer incentives for maritime careers and establish expedited certification programs for veterans.
Establishing a National Maritime Security Council: The U.S. Merchant Marine lacks unified oversight, with responsibilities scattered across multiple agencies. A National Maritime Security Council would integrate combat and commercial maritime needs into our national security planning.
As President Trump raises concerns about controlling the Panama Canal, we must recognize that controlling waterways means little if America doesn't have its own ships to sail through them. Even if we maintain the world's most powerful navy, what good is that power if we can't sustain global logistics without relying on foreign vessels?
True sea power has never been about having the biggest navy alone. It combines naval military strength with a robust commercial fleet supporting trade and national security. Right now, China has both elements of sea power. America has only one.
We have a legal obligation under the Merchant Marine Act to maintain sufficient maritime capacity for national defense and commerce. The president's commitment to revitalizing American shipbuilding acknowledges this reality, but success will require sustained investment and policy coordination across the executive and legislative branches.
Without rebuilding our shipping industry to fulfill this mandate, American tough talk on China remains just that — talk. Establishing a White House Office of Shipbuilding signals a welcome shift in priorities, but it must be the beginning, not the end, of America's maritime revival.
Cmdr. Ander Heiles is a surface warfare officer and licensed merchant mariner attending the Joint Advanced Warfighting School in Norfolk, VA. He commanded the USS Monsoon (PC 4) and is the prospective executive officer for the Naval Talent Acquisition Groups Empire State. ...read more read less