Trump's Executive Order Seeks to Revive U.S. Shipbuilding and Combat China's Maritime Dominance

U.S. Shipbuilding

New Maritime Action Plan to Prioritize Shipbuilding, Workforce Development, and Infrastructure Overhaul

President Donald Trump has signed a sweeping executive order aimed at reviving the U.S. maritime industry and shipbuilding sector. The order focuses on public-private investments, long-term funding, and strategic policy reforms to reduce reliance on foreign-built vessels—particularly those from China.

The executive order mandates key federal agencies—including the Department of Defense, Homeland Security, and the U.S. Trade Representative—to submit a comprehensive Maritime Action Plan (MAP) within seven months. This MAP will outline actionable steps to strengthen domestic shipbuilding, ship repair, port infrastructure, and the maritime workforce.

A centerpiece of the plan is the creation of a maritime security trust fund. This fund will ensure stable financing for infrastructure modernization and shipyard upgrades. Moreover, it will support workforce training programs and offer financial incentives to boost domestic shipbuilding capacity.

Additionally, the Department of Homeland Security must propose new legislation to counter regulatory circumvention. Companies routing cargo through Canadian or Mexican ports to avoid U.S. laws may face added Customs and Border Protection (CBP) fees.

Another innovative policy under the order is the establishment of Maritime Prosperity Zones. These zones, including one proposed in the Great Lakes region, will serve as hubs for maritime economic growth and innovation.

In a further effort to challenge China’s dominance in global shipping, the executive order supports proposals by the USTR to impose docking fees on Chinese-built vessels or their owners. While intended to level the playing field, these measures raise concerns among U.S. industries about increased costs and the practical hurdles of rebuilding a competitive domestic shipbuilding base.

The executive order represents one of the most aggressive policy pushes in decades to reassert U.S. leadership in maritime manufacturing and logistics. Yet, its success will depend heavily on how effectively agencies implement the MAP and secure bipartisan support for legislative changes.

U.S. Targets Chinese Maritime Dominance With Proposed Tariffs on Cranes and Containers

USTR (The U.S. Trade Representative)

100% Tariff on Chinese STS Cranes Signals Strategic Pivot in Port Infrastructure Security

Washington Aims to Curb China’s Grip on Maritime Supply Chains

The U.S. Trade Representative (USTR) has announced plans to impose steep tariffs on Chinese-made port equipment to counter China's overwhelming control of the global maritime infrastructure. This marks a significant escalation in trade policy, targeting ship-to-shore (STS) cranes and shipping containers that are critical to port operations.

As proposed, a 100% tariff would apply to STS cranes, while other cargo-handling equipment—including shipping containers—could face duties ranging from 20% to 100%. These measures are slated for implementation within 6 to 24 months from April 17, 2025.

Security Risks Drive Trade Shift Amid Lack of U.S. Alternatives

China currently produces 95% of the world's shipping containers and supplies 80% of the U.S. market with STS cranes. These figures, cited in the USTR’s Section 301 Investigation Report, highlight the strategic vulnerabilities in America’s maritime logistics network. U.S. lawmakers argue that China’s technological dominance poses a national security risk, especially in periods of geopolitical tension.

A 2024 report from the House Select Committee on the Chinese Communist Party warned that China’s control over such critical equipment could be exploited to "exert pressure on the U.S.," raising alarms over the potential for surveillance or sabotage at American ports.

Despite this, the U.S. currently lacks viable domestic manufacturing capacity for most of this equipment. Only two major foreign players—Konecranes (Finland) and Liebherr (Germany)—are considered viable alternatives, although their products are significantly more expensive than Chinese models.

Next Steps: Public Hearings and Industry Feedback

The USTR will hold a public hearing on May 19 to gather input on the economic and operational impact of the proposed tariffs. Industry stakeholders, logistics companies, and security analysts are expected to weigh in on the feasibility and timeline of the measures.

In the short term, port operators may continue relying on Chinese equipment. However, the proposed tariffs signal a strategic push to re-shore or diversify the U.S. supply chain away from China—particularly in areas deemed vital to national infrastructure.

CATL and APM Terminals Partner to Accelerate Electrification of Container Terminals

APM Terminals

Strategic Alliance Targets Zero-Emission Port Operations

China’s Contemporary Amperex Technology (CATL) and Netherlands-based APM Terminals have signed a landmark agreement to drive the electrification of container terminal operations. The partnership aims to accelerate the global shift toward battery-electric container handling equipment through the Zero Emission Port Alliance.

Under the agreement, CATL will supply advanced batteries and integrated energy systems for APM Terminals’ electric fleet, including terminal tractors. This collaboration spans the full battery lifecycle, covering design, deployment, after-sales service, and recycling, ensuring a sustainable and circular approach to energy use in ports.

APM Terminals, an independent division of Danish shipping group AP Moller–Maersk, operates in more than 60 countries and is developing several new facilities. Together with Maersk, the company has committed to achieving net-zero emissions by 2040, integrating renewable power sources such as solar and wind into port operations.

Driving Efficiency and Sustainability in Global Trade

The electrification initiative also focuses on operational efficiency, with plans to reduce dwell times, optimize energy use, and deploy energy-saving infrastructure. By transitioning to battery-electric handling equipment, APM Terminals can significantly cut its carbon footprint while enhancing operational reliability and lowering long-term energy costs.

As the maritime logistics industry faces increasing regulatory and environmental pressures, this partnership positions both companies at the forefront of port decarbonization. The integration of CATL’s battery technology with APM Terminals’ global operations could serve as a scalable model for ports worldwide seeking to achieve zero-emission targets.

The Metalnomist Commentary

The CATL–APM Terminals partnership signals a pivotal shift toward zero-emission port infrastructure. By combining battery innovation with operational expertise, the initiative could redefine industry standards for sustainable maritime logistics. The success of this collaboration may influence other port operators to accelerate similar decarbonization strategies.

The Red Sea Shipping Crisis Worsens Amid Houthi Aggression

Escalating Houthi Attacks Intensify Red Sea Shipping Crisis

In the midst of ongoing conflicts in the Middle East, the Red Sea shipping crisis has emerged as a significant issue due to increased aggression by Iran-backed Houthi rebels. This crisis exacerbates the already complex geopolitical landscape, further straining global supply chains.

According to Rob Handfield, a supply chain expert and professor at North Carolina State University, the Houthis are specifically targeting Western ships. "What they're doing is, they are targeting western ships," Handfield said. "They'll destroy a ship, or they'll force the crew to abandon ship, and this is causing real havoc."

The extent of the problem is alarming. The Houthis have attacked or threatened U.S. Navy and commercial vessels approximately 230 times, a statistic that has largely gone underreported. Handfield explained to KTRH, "It's happening so often now that they don't even keep track of it anymore, unfortunately. And what has happened is that shipping lines have just decided to completely avoid that region."

Economic Impact and Supply Chain Disruptions

The consequences of the Houthi aggression are far-reaching. The decision by shipping companies to avoid the Red Sea region has led to rising costs and severe disruptions in supply chains. For instance, the cost of a 40-foot shipping container, which was $1,600 at the end of last year, has now surged to $6,000.

The escalating costs and disruptions are a cause for concern among industry stakeholders and policymakers. Republicans have criticized the Biden administration for failing to effectively address the Houthi threat, suggesting that more decisive action is needed to protect maritime routes and ensure the stability of global trade.

Outlook and Potential Solutions

As the crisis continues to unfold, there is an urgent need for international cooperation and strategic measures to mitigate the impact on global shipping and supply chains. Enhanced security measures, diplomatic efforts, and potential military interventions are among the options being considered to stabilize the region and secure critical maritime routes.

Hurricane Debby halts traffic at southeast US ports

Hurricane Debby, a Category 1 storm, has caused significant disruption along the southeastern coast of the United States, leading to the closure of major ports and halting vessel traffic. The storm made landfall earlier today in northern Florida, bringing strong winds and heavy rain to the region.

In Florida, Seaport Manatee and Port Tampa Bay were the first to suspend operations. On August 3, Seaport Manatee issued a port condition Zulu, a severe alert indicating that gale-force winds are expected within 12 hours, leading to the suspension of all port activities. Port Tampa Bay also closed its shipping lanes on the same day, effectively halting maritime operations in the area.

The closures at these ports are significant given their role in the export of key agricultural products. From January to May of this year, combined exports of Diammonium Phosphate (DAP) and Monoammonium Phosphate (MAP) from Port Tampa Bay reached 245,000 metric tonnes, representing nearly 91% of the year-to-date offshore export volumes, according to data from the US Census Bureau. These ports are critical hubs for the fertilizer industry, with central Florida housing nearly two-thirds of the United States' ammonium phosphate production capacity, primarily operated by Mosaic, as reported by The Fertilizer Institute (TFI).

Further north, the Port of Savannah in Georgia has also closed in anticipation of the storm. According to the Georgia Ports Authority, the port shut down at 3:00 PM ET today and will remain closed through Tuesday, with plans to reopen on Wednesday. During this time, no vessel activity will be permitted, adding to the disruption of maritime operations along the southeastern seaboard.

As Hurricane Debby continues its path, the economic impact of these closures is expected to be significant, particularly for industries reliant on these ports for the export and import of goods.

US Dockworkers End Strike After Tentative Wage Agreement

US Port Strike

A disruptive port strike that had halted operations at container terminals from Maine to Texas has come to an end, as US dockworkers agreed to resume work following a tentative deal on wages. The International Longshoremen's Association (ILA) announced late Thursday that it had reached an agreement with the United States Maritime Alliance (USMX), paving the way for ports to reopen and operations to resume.

Contract Extension to Facilitate Further Negotiations

The ILA confirmed that it has agreed to extend its current contract with the USMX until January 15, providing more time to address and negotiate other outstanding issues. The USMX, which represents containership owners, terminal operators, and port associations, has been in talks with the ILA to resolve the dispute that led to the strike beginning on October 1.

"Effective immediately, all current job actions will cease, and all work covered by the master contract will resume," the ILA said in a statement. The agreement comes as a relief for businesses across the supply chain, as the strike had caused significant disruptions, with containership operators forced to queue outside US east coast ports.

The strike’s impact was felt across the logistics industry, with major shipping companies like Maersk implementing surcharges for containers destined for the US east and Gulf coasts as the labor action stretched into late October. The tentative deal, however, provides a temporary reprieve, allowing ports to catch up on the backlog and avoid further economic fallout as peak holiday shipping season approaches.