Page 33: of Marine News Magazine (May 2026)

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Shipbuilding

U.S. Commercial Fleet

A Wakeup Call Shipbuilding Capacity

The wakeup call should concentrate not only on the The industry analysis concerning the ferry grants to in? ated cost of crude oil but also the downstream effect date? Will the $657 million actually be viewed as a “subsi- on shipping’s industry partners and manufacturing. One dy” in a coastwise registered market that has never accept- of the single geopolitical in? ationary effects will be ship- ed a subsidy for construction? A question that was debated building itself. We are seeing the rush to execute building during development of the “Ships Act” and a question that contracts in the Far East yards in an attempt to get ahead should be debated.

of the costs coming down the road. With six ships dry- The simple truth is U.S. domestic shipbuilding costs docking in South Korea during 2026, Amtech has already will increase and not decrease in the short term. With experienced in? ated costs with the ? rst vessel of over 35% the current price levels for ATB tank barge or MR tankers due to energy and tariffs. being quoted, commercial new construction contracts and

Look again at the aluminum example above when ana- available drydock slots will “pause”. lyzing new U.S. construction costs. The U.S. Department We emphasize “commercial” simply because the U.S of Transportation and Marad announced on April 6, 2026, government is rapidly announcing new multiple USCG $657 million in FY 2026 competitive grants to improve ice breaker contracts, US Navy LSM construction, the ferry infrastructure, enhance service in rural areas, and Navy rushing to autonomous logistics, RFPs for support reduce emissions. Administered by the FTA, the funding vessel designs, and expedited nuclear submarine contracts supports new vessel construction, terminal upgrades, and for modules and hulls. These are programs and budget expanded routes to improve accessibility, with applications funding that will eat up available US shipbuilding capacity open through May 11, 2026. The lesson is “timing is every- and labor faster than a rescue dog attacks his ? rst bowl of thing” and imagine investing in this market with escalating kibble at the new foster home. costs of aluminum affecting most if not all small ferry con- Every response to the politically generated “Restoring struction. Take that thought a “Maga” step forward and America’s Maritime Dominance” has developed into a rush determine how the U.S. would move towards domestic to announce “shipyards of the future” at new Green? eld loca- aluminum manufacturing and even further downstream tions, robotics and software programs updating existing ship- to determine how many coastwise registered vessels can yards, and software or AI promises from every carpetbagger properly distribute caustic soda, bauxite or other new com- capable of developing a pitch book. There are a few shipyard modities needed to rebuild our infrastructure. locations and discussions that show promise and we hope

The problem goes well beyond the U.S Navy. they succeed. That said, the time needed to accomplish this www.marinelink.com MN 33|