A newly formed alliance of labor unions and shipbuilding companies announced Tuesday their joint effort to push Congress toward passing legislation designed to restore America’s domestic shipbuilding capabilities.
The United States, once a dominant force in global shipbuilding, has fallen behind China in the maritime construction sector. The coalition is supporting the SHIPS for America Act, which was introduced last year with backing from both political parties and seeks to increase the number of American-built and American-flagged ships while training sailors and providing funding for domestic shipyard operations.
Michael Wessel, who serves as president of the newly established USA Shipbuilding Coalition, emphasized the importance of rebuilding this sector. “Revitalizing this critical industry is paramount to protecting our national security, creating jobs, and growing our economy,” Wessel stated.
The advocacy campaign emerges at a time when the SHIPS Act legislation has encountered obstacles related to financing questions and regulatory uncertainties that have slowed its progress through Congress.
Wessel’s lobbying organization previously helped orchestrate a union-backed investigation by the U.S. Trade Representative using Section 301 of the Trade Act of 1974, which determined that China employs unfair strategies to control the maritime industry.
This determination opened the door for implementing port charges and tariffs against China, though these measures were suspended following Chinese retaliation. The proposed SHIPS Act would use these fees, along with additional tonnage taxes on foreign ships, as funding sources for the planned revival of domestic shipbuilding.
According to a coalition spokesperson, the group encompasses approximately twelve unions, associated companies, and shipyards, though the organization chose not to reveal its complete membership roster.
