US Coast Guard and Maritime Transportation Subcommittee Chairman Mike Ezell (R-MS) addressed a hearing titled “America Builds: Maritime Infrastructure” on Wednesday saying: “It is clearly critical that we must build a safer and more efficient system.”
The new chairman, for the 119th Congress, said the Jones Act is quite literally the bedrock and foundation of the nation’s shipbuilding industrial base because it helps to maintain a pool of qualified American mariners that the US relies on to transport goods and its military, in times of peace and war.
“Unfortunately, the rise of the shipbuilding industries of global competitors has led to a decline in our own shipbuilding capacity. Coastal Mississippi and the Gulf Coast as a whole, is home to several shipyards employing thousands of Americans. I look forward to discussing ways to reinvigorate this critical industry.”
Giving witness testimony, Joe Rella, President, St. Johns Ship Building, Inc., on behalf of Shipbuilders Council of America, pointed out that when the Jones Act is not enforced or is undermined by shortsighted policies, it can have detrimental effects on the broader domestic maritime industry and U.S. job creation.
For example, a 2017 decision by the Customs and Border Protection (CBP) 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 due to the uncertainty introduced by executive actions that contravene Congressional intent.
“The immediate impact of these cancellations dampens the domestic industry, initiating a vicious cycle where future opportunities may also be reconsidered or rescinded. This not only affects current contracts but also hampers the industry’s ability to invest in its workforce and modernize facilities, making them safer and more efficient.
“This issue exemplifies how a decision by an agency to not enforce the Jones Act can adversely impact commercial shipbuilding, reverberating throughout the entire shipyard industrial base. This raises costs and destabilizes the industry’s ability to support national defense requirements. We urge 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.
“Rather than undermining the Jones Act and the essential shipbuilding manufacturing sector, the United States government—both the Administration and Congress—should promote policies that actively encourage the expansion of the shipyard industrial base.”
At the end of the 118th Congress, bi-partisan, bi-cameral legislation was introduced titled the “Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act” (SHIPS Act) sponsored by Senator Mark Kelly, Senator Todd Young, Congressman Trent Kelly, and Congressman John Garamendi and Congressman Michael Waltz.
The proposed legislation would provide for the first time a national maritime strategy to grow the entire maritime industrial base from shipbuilding, to maritime logistics to the merchant mariner workforce. The bill proposed 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.
Concerns were raised about China’s shipbuilding and naval capacity by Tom Reynolds, Chief Strategy Officer, Seasats, on behalf of Association for Uncrewed Vehicle Systems International. 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, said Reynolds. 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.
China builds over 40% of large ocean-going vessels manufactured globally each year, totaling over 1,000 ships annually, compared to approximately 10% per year by the United States.
Reynolds also discussed autonomous maritime technologies saying that existing regulations are not compatible with the state of technology in the maritime industry. “Currently, many of the regulations governing maritime operations result from centuries of maritime tradition of crewed vessels and do not adequately address the unique characteristics and operational requirements of MRAS. Until this is remedied, U.S. maritime regulations will continue to perpetuate uncertainty for manufacturers, operators, and investors, discouraging innovation and slowing the adoption of these transformative technologies.”
Specifically, he said that regulations need to be updated to address three key areas – development, certification, and the operation of marine and robotic autonomous systems.
1. Development: Current regulations require businesses to spend a significantly greater amount to test as sea than our international competition. Industry needs a testing regime at sea where these systems can operate with no chase vessels, no human “lookouts” and limited liability.
2. Certification: Despite all the advances in sensors, artificial intelligence, and robotic reliability, regulations do not address a clear path to certifying marine robotic and autonomous systems for operations.
3. Operation: Industry has developed the ability to use robotic systems safely and effectively for fisheries, hydrography, oil/gas, subsea mining, and environmental studies, however regulations restrict or lack clarity on how to operate these systems at sea.
Brian Schoeneman, Political and Legislative Director, Seafarers International Union of North America, on behalf of USA Maritime, 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.”
This is not an insurmountable problem, he says. “To paraphrase former President Bill Clinton, there is nothing so wrong with America’s maritime industry that it cannot be solved by what is right with our industry. We have some of the smartest, most dedicated people in the world in this industry. We have some of the greatest thinkers, the loudest and most eloquent voices, and tens of thousands of the best merchant mariners on the planet. Working together, we can fix these problems and turn this ship around.”