US shipbuilding push faces economic, labor hurdles

The US shipbuilding industry, once a global leader, has dwindled to producing just a fraction of the world’s commercial vessels, with most American shipyards now focused on naval contracts, reports the Wall Street Journal. President Donald Trump is proposing measures to revitalize the sector, including port fees on Chinese-built ships and requiring some US exports to move on domestically built vessels. However, economic and labor constraints pose significant challenges.

China now dominates global ship production, building more than half of the world’s tonnage in 2023. In contrast, the US accounted for just 0.1 percent. American shipyards, which employed over a million people during World War II, have not surpassed 200,000 workers since the early 1980s. High costs and inefficiencies also hinder competition: a US-built boxship costs $355 million, while a similar vessel from China costs just $55 million.

South Korea’s Hanwha Group acquired Philly Shipyard in 2023, expanding its global shipbuilding footprint while maintaining the yard’s focus on US commercial and government contracts. While it may bring investment and expertise, it also highlights the US industry's reliance on international ownership to remain viable.