President Franklin Delano Roosevelt called the U.S. Merchant Marine the nation’s “fourth arm of defense,” reflecting its critical contributions during peace and war—from enabling U.S. seaborne trade to providing logistics support for military contingencies to steaming into harm’s way. Unfortunately, today’s Merchant Marine is underfunded and undermanned.
The current state of the U.S. Merchant Marine fleet is a vulnerability. In 2023, the fleet had 177 oceangoing, self-propelled vessels of 1,000 gross tons and above, of which 153 were militarily useful and 93 were eligible for Jones Act service, down from 193 in 2000.1 The Jones Act requires vessels participating in domestic trade to be built in the United States, owned by U.S. citizens, and crewed by U.S. mariners.
By contrast, according to the U.N. Conference on Trade and Development’s Handbook of Statistics 2023, China owns nearly 6,000 Chinese-flagged vessels of 1,000 gross tonnage and above and another 2,800 registered under foreign flags.2 Recently, the Office of Naval Intelligence assessed China’s shipbuilding industry as having a production capacity 232 times that of the United States, or almost 50 percent of total global shipbuilding capacity.3
Grow U.S. Shipbuilding Capacity
Increasing the Jones Act–eligible merchant fleet starts with U.S. shipbuilding capacity. The current rate of U.S. production is approximately five ships per year, which is not globally competitive.4 There are two ways to grow this capacity: Optimize existing shipyards or build new ones to produce commercial oceangoing ships. Unfortunately, most U.S. yards currently lack the infrastructure, such as deep channels and large dry docks, to build or maintain and repair these ships.
In 2021, the Bipartisan Infrastructure Law delivered $1.2 trillion to be invested in the nation’s infrastructure, with $17 billion earmarked for port infrastructure and waterways. In 2023, the Maritime Administration announced $20.8 million in grants to 27 small shipyards through the Small Shipyard Grant Program.5 And recently, the Department of Transportation announced $500 million for ports available through the Port Infrastructure Development Program.6 Yet, funding was not directed to U.S. shipyards that build large vessels, and some of these shipyards continue to operate at a loss.7
Allies could be a source of support for U.S. shipyards. Secretary of the Navy Carlos Del Toro noted in a 2023 speech to the Harvard Kennedy School that the U.S. maritime industry “is ripe with opportunity to partner with a greater number of shipbuilders here in the U.S. and with our closest allies overseas, including Japan and South Korea.”8 In March 2024, he toured major yards in South Korea and encouraged their leaders to establish U.S. subsidiaries and invest in yards in the United States. Indeed, Philly Shipyard, a leading U.S. yard that specializes in Jones Act commercial ships, announced in June 2024 that it had agreed to a deal in which it would be purchased by South Korean shipbuilder Hanwha Ocean and defense firm Hanwha Systems.
In 2020, a proposal to build a fifth naval shipyard was rejected because of cost, policy, and complex technical concerns. With another public yard off the table for now, the pressure has shifted to the private yards, which already have taken on submarine maintenance to help ease backlogs. But skilled workers take years to train and receive security clearances, and time dedicated to the military fleet takes away from their ability to grow the Merchant Marine fleet. New shipyards are needed.
Increase Sealift Fleet
Military equipment, personnel, and supplies are transported primarily by sea. Government-owned ships are used when suitable U.S.-flagged commercial ships are unavailable. But what if the logistics capability of government-owned ships is unavailable?
Established in 1996, the Maritime Security Program (MSP) provides U.S.-registered, commercially viable, militarily useful merchant ships a retainer in exchange for their availability during times of war or national emergency. But the financial burden, at times higher shipping costs, and the requirement to carry U.S. Merchant Marine Academy cadets has some large shipping companies reevaluating their participation. The Tanker Security Program (TSP) is a similar program, focused on fuel resupply for the armed forces.
But these fleets are insufficient. Today, the TSP has 10 U.S.-registered product tank vessels, and the MSP has 60 vessels, the maximum number fixed by U.S. Code.
The Maritime Administration maintains the National Defense Reserve Fleet and its Ready Reserve Force (RRF) military subset in support of national security. The “newest” ships in the RRF were built in the mid-1980s. While buying used ships for the RRF could be an option, the configuration of these vessels can be a challenge. For example, a commercial roll-on/roll-off ship might not be easily adapted for military cargoes.
In addition, buying older ships could mean more maintenance being completed at Chinese yards, because they have greater industrial capacity and larger labor forces than their Japanese and Korean counterparts. The Jones Act–eligible container ship George II, for example, recently completed conversion from steam power to liquefied natural gas at a low-cost Chinese shipyard.
A limited number of Merchant Marine sealift ships means limited wartime replenishment, fewer ships for specialized missions, and the inability to strategically preposition combat cargo at sea.
Invest in the Future Workforce
U.S. government–owned sealift vessels are crewed by U.S. mariners. According to the American Maritime Partnership, the domestic fleet provides half the mariners to operate activated government-owned sealift vessels. Operating the Merchant Marine fleet requires an educated and trained labor force credentialed and ready to crew vessels, but this takes years.
Growing this cadre starts at the seven U.S. maritime academies: the federal service academy—U.S. Merchant Marine Academy (USMMA) at Kings Point, New York—and the six state maritime academies in Massachusetts, Maine, Michigan, New York, California, and Texas. The state academies and USMMA prepare Americans for a career in the Merchant Marine fleet but need to increase their enrollment. There are a few ways that could support this; Kings Point provides a useful case study.
Curriculum. Academy curriculum must be designed to meet the needs of the future. Certain classes and tests are not regularly changed or updated. For example, some “pass-on-next-year” information packets (PONYs)—tools midshipmen use to pass courses—are identical to faculty tests year after year. To keep USMMA (and the state maritime academies) relevant, its curriculum requires a complete analysis and overhaul that ensures it aligns with the armed forces’ priorities and values and prepares midshipmen for a career in the evolving maritime domain, not just the licensing test.9
Sea Year. During Sea Year, students spend a year on a commercial ship to gain hands-on experience—from ship-driving to engine repair and ship maintenance. A Sea Year project is required to document classroom knowledge and meet academic objectives. For most midshipmen, this is their first exposure to foreign port calls and cultures and their first test of life at sea. Unfortunately, questions about the safety of midshipmen at sea can deter potential students from applying or enrolling.
The security and safety of foreign ports varies by country. Midshipmen on Sea Year may have little to no understanding of different nations’ cultural barriers, stereotypes, and prejudices, and on board a commercial merchant ship, mentoring or support can be hard to find. So, while the Coast Guard provides foreign port security assessments to USMMA, there is a disconnect when it comes to getting that information to midshipmen. A reporting framework and a plan for placing midshipmen should be required from each vessel, in coordination with industry and academia. Training for the civilian mariners on board the participating commercial vessels and memoranda of agreement with the maritime companies would help ensure the safety and well-being of all midshipmen.10
Culture and outreach. USMMA’s goal is a 25 percent female student population; however, the actual number of female midshipmen has decreased from 22.9 percent to 13.8 percent over the past five years.11 In addition, the number of potential midshipmen rejecting appointments has increased. A National Academy of Public Administration report found that challenges in meeting diversity goals and high rates of sexual assault and sexual harassment contributed to the Academy’s enrollment shortfalls.12 USMMA should expand outreach to underrepresented groups and work to improve student safety and organizational culture.
A Critical Arm of the Sea Services
Service in the maritime community requires a unique set of skills obtained over years. U.S. shipping companies must find ways to grow and retain this experienced and diverse labor force. These firms should build a strong culture and strengthen family support programs to improve work-life balance, spousal support, and geographic stability. Apprenticeship programs could target individuals ready to learn through structured on-the-job training.
The U.S. Merchant Marine is required for the movement of goods to support economic growth and prosperity, national security, and global competitiveness. The fleet and its mariners must be prioritized and reintegrated as a critical arm of the Sea Services. With additional U.S. shipyards and sealift ship capacity and greater investment in the maritime labor force, the Merchant Marine will be positioned to do its part for national maritime security.
1. U.S. Maritime Administration, United States Flag Privately‐Owned Merchant Fleet Report, “Oceangoing, Self‐Propelled Vessels of 1,000 Gross Tons and Above that Carry Cargo from Port to Port as of: January 24, 2023.”
2. U.N. Conference on Trade and Development, Handbook of Statistics 2023, “Merchant Fleet.”
3. Matthew Hipple, “China’s Navy is Using Quantity to Build Quality,” The Maritime Executive, 18 February 2024.
4. Congressional Research Service, “U.S. Commercial Shipbuilding in a Global Context, 15 November 2023.
5. U.S. Maritime Administration, “USDOT Announces Funding for 27 Small Shipyards in 20 States to Help Increase Productivity and Create Jobs,” press release, 3 May 2023.
6. U.S. Maritime Administration, “USDOT Announces $450 Million for Ports Available through the Port Infrastructure Development Program,” press release, 13 March 2024.
7. Congressional Research Service, “U.S. Commercial Shipbuilding in a Global Context.”
8. U.S. Navy Press Office, “SECNAV Delivers Remarks at Harvard Kennedy School.”
9. National Academy of Public Administration, U.S. Merchant Marine Academy: A Path Forward (Washington, DC: NAPA, November 2021).
10. National Academy of Public Administration, A Path Forward.
11. U.S. Merchant Marine Academy, “Class Profile, Summary Profile Class of 2027.”
12. National Academy of Public Administration, A Path Forward.