“Make ships great again” has become the rallying cry for lawmakers eager to resuscitate the U.S. shipbuilding industry by imposing port fees on vessels flagged in the Chinese mainland. But many analysts say this approach is a self-inflicted wound.
Once a global leader in hulls and superstructures, the U.S. now accounts for just 2% of new ship orders. High labor costs, decades of underinvestment, and fierce competition from Asia have sunk its competitiveness. In response, some U.S. lawmakers suggested port fees as leverage—yet data shows such fees would ripple through international trade.
“Port fees on overseas vessels might boost short‑term revenue,” says maritime economist Alex Monroe. “But they also drive up freight costs, which get passed on to American businesses and consumers. In a tightly connected supply chain, no one wins when costs spike.”
Take a container shipment from Asia to the U.S. West Coast: a port surcharge of $100 per container could add millions in annual costs for retailers, then trickle down to shoppers. Small businesses that rely on imported components would see tighter margins, stifling growth and innovation.
Rather than protectionist measures, experts point to long‑term solutions:
- Technological upgrades: Investing in advanced manufacturing, automation, and green propulsion to build eco-friendly vessels.
- Public‑private partnerships: Leveraging defense contracts and commercial orders to stabilize shipyards.
- Workforce development: Training a new generation of welders, engineers, and naval architects to compete globally.
“South Korea and Japan sustained their shipbuilding prowess by marrying government support with private‑sector innovation,” notes maritime consultant Ravi Patel. “The U.S. can do the same—without alienating trading partners.”
In an era of interconnected markets, knee‑jerk tactics like port fees risk fragmenting the global shipping network. For U.S. shipbuilders to truly set sail again, a forward‑looking strategy—grounded in investment, collaboration, and sustainability—may be the most powerful tide beneath their keels.
Reference(s):
cgtn.com
