U.S. Shipbuilding capacity plummets from over 300 Yards to less than 20, urgent action needed

The Center for Strategic and International Studies (CSIS), a prominent U.S. think tank, recently published a column in its journal “PacNet” titled ‘With South Korea’s help, can US shipbuilding catch up with China?’ The article, authored by Park Jin-ho, a policy advisory committee member of the South Korean Ministry of National Defense, underscores the urgent need for the United States to collaborate with South Korea to revitalize its declining shipbuilding industry.

Park Jin-ho’s column highlights the stark reality facing the U.S. shipbuilding sector, which has seen a dramatic reduction in capacity over the decades. “One of the urgent tasks for the U.S. administration to address is the collapse of the American shipbuilding industry, but this cannot be reversed by the U.S. alone,” Park stated. He emphasised that the most effective alternative lies in partnering with allies like South Korea, which boasts world-leading shipbuilding technology and competes robustly with China in the global market.

The article draws attention to the growing naval power of China, which is projected to possess 435 warships by 2030, significantly outpacing the U.S. navy’s fleet of 290 ships. Park noted, “In the early 1980s, there were over 300 shipyards in the U.S., but now there are fewer than 20.” This decline, he argued, cannot be reversed without a comprehensive overhaul of U.S. maritime industry laws, such as the Jones Act, which restricts foreign-built ships from operating in U.S. waters.

Park Jin-ho further elaborated on the unrealistic nature of the U.S.’s current aim to build more ships domestically, suggesting that South Korea could provide an immediate remedy. “South Korea, which holds the world’s top shipbuilding technology and competes with China in the shipbuilding market, can provide an immediate remedy for the U.S.,” he asserted. Over the past decade, South Korea has constructed 3,000 merchant and naval ships, and leading domestic shipbuilders like Hanwha Ocean and HD Hyundai Heavy Industries are well-positioned to play a pivotal role in rebuilding the U.S. shipbuilding industry.

The potential benefits of U.S.-South Korean cooperation extend beyond shipbuilding. Park pointed out that such collaboration could effectively deter China’s maritime activities and enhance allied naval operational capabilities in the strategically vital Indo-Pacific region. He also emphasized the possibility of forming a new trilateral security cooperation framework involving Japan, which could further bolster regional security.

“Cooperating with South Korea, a reliable ally for 70 years, is the best solution to urgently revive the collapsing American shipbuilding industry and maintain U.S. maritime leadership,” Park concluded. He added that South Korea’s investment in the U.S. shipbuilding industry would contribute to mitigating side effects such as supply chain disruptions, a critical consideration given the current global economic climate.

The U.S.-South Korea collaboration could not only restore U.S. shipbuilding capacity but also strengthen regional security dynamics in the Indo-Pacific, addressing shared threats and enhancing economic resilience amidst global supply chain disruptions.

Source : Businesskorea