Hold the Bricks, Start the Discussion on the Future of Domestic Shipbuilding
by Robert Kunkel, President, Alternative Marine Technologies, Marine Link, March 26, 2025 (excerpts)
… We are “Jones Act” owners, operators and builders…. When cries of completely abolishing the legislation have been raised, we have remained supportive, as we do not believe that is the answer. That said, we believe it is time to develop a round table and look to modify the Act to keep pace with global technology and geopolitical events….
That modification would include a time table for removing the US build requirement for commercial “Bluewater” tonnage both in domestic operation and global operation without restriction. Certain current events have made that discussion relevant.
In March of this year, the maritime media announced the addition of a 30-year-old, foreign built LNG cargo vessel, “reflagged U.S.” and entering the Puerto Rico trade. The vessel will load US LNG and discharge the cargo under a multi-year contract with Naturgy to the Puerto Rico energy system at Penuelas. The vessel operates under a “Jones Act“ loophole provided in the Coast Guard Authorization Act of 1996….
The Jones Act lobby effort has historically advised that foreign built tonnage is substandard and inferior. Our South Korean building relationships have firmly confirmed that statement is far from the truth and recent announcements in US shipyards being purchased by foreign entities to build both Navy and commercial tonnage seems to indicate our opinion is correct….
Trump 2.0 & the Maritime Industry
The new Administration has announced a sweeping reform of the nation’s shipbuilding and maritime sectors. In the President’s statement; “We used to make so many ships. We don’t make them anymore much, but we’re going to make them very fast, very soon. It will have a huge impact.”
The recent “SHIP ACT” legislation announced the construction of 250 ships and a promise to compete with China as we build new shipyard capacity. …
the simple fact that there is no customer base for commercial Bluewater tonnage at recent cost levels….
Beyond the US build cost, we have lost the capacity of majority Tier I shipyards to projected Navy work needed to address current geopolitical events and National Security. National Steel & Shipbuilding has removed themselves from commercial shipbuilding. Do not be surprised when Hanwha Philadelphia announces all of the graving docks are booked for Navy construction.
Watch for reports from other abandoned shipyard locations with new investment to attract a Navy budget reaching $40 billion a year until 2054.
Truth is when we are now called to build a Jones Act Medium Range Tanker, Containership or LNG vessel the response is “there is nowhere to build it”. Matson reported delaying the Aloha Class container project until 2027/2028 ….
read … Hold the Bricks, Start the Discussion on the Future of Domestic Shipbuilding