Navigating Troubled Waters: A New Analysis Uncovers Threats to U.S. Maritime Dominance

A recent publication by the Open Markets Institute highlights a troubling trend regarding the United states’ maritime capabilities, underscoring meaningful threats to both national security and economic autonomy. the report, titled “Charting a New Course: Steering U.S.Maritime Policy Towards Security and Prosperity,” authored by transportation policy analyst Arnav Rao, reveals some eye-opening figures: while 80% of international trade in the U.S. is transported via sea routes and 90% of military supplies depend on maritime logistics, America only accounts for a mere 0.13% of global large commercial vessel production.

In contrast, China has established itself as a powerhouse in maritime logistics, producing 60% of new ships and controlling essential components like container manufacturing and port crane production. This imbalance is already affecting military preparedness; for instance, in 2024 alone, the Navy had to put aside 17 support vessels due to insufficient crew numbers. Alarmingly, the U.S. currently operates with fewer than 15 fuel tankers available when over 100 are necessary for any significant conflict in the Pacific.

As per this report, these issues can be traced back to deregulatory measures from the 1980s that dismantled regulations treating ocean shipping as a public utility. This shift allowed foreign-owned shipping cartels to take over key shipping routes while sidelining American-flagged carriers.

The COVID-19 pandemic further exposed these weaknesses when foreign shipping alliances turned down hundreds of millions worth of U.S. agricultural exports in favor of returning empty containers to China for more lucrative cargo options rather.

Rao emphasizes that this situation transcends mere financial investments or tariffs; it calls for reinstating a public-interest approach where government oversight ensures that ocean shipping aligns with national interests—similar to practices successfully implemented throughout much of the last century.

The report advocates for sweeping reforms such as increased public investment in shipbuilding and infrastructure improvements alongside stronger fair-market regulations enforced by the Federal Maritime Commission aimed at curbing foreign cartel influence.

While these changes might lead to higher initial costs within some sectors of shipping,proponents argue that long-term advantages—including bolstered national security and greater economic independence—will far surpass any short-term financial burdens incurred. By investing publicly into shipyards domestically, America could better compete against heavily subsidized Asian facilities while fostering innovation through fair market practices within ocean transport systems.