SEOUL, March 4 (AJP) - As the Trump administration presses ahead with its "Make America Great Again" agenda, the White House is looking to bolster the United States’ waning maritime supremacy — with an eye on South Korea.
The U.S. shipbuilding industry has been in decline for decades, a trend set in motion by the Merchant Marine Act of 1920, known as the Jones Act, which fostered monopolies among domestic shipbuilders and eroded global competitiveness.
Further restrictions, including the Byrnes-Tollefson Amendment of the 1960s, mandated that military ships and critical components be constructed domestically, exacerbating the sector’s stagnation.
Meanwhile, China has tightened its grip on global shipbuilding, accounting for about 60 percent of worldwide orders in 2023.
Analysts say that by the end of last year, China had surpassed the United States in total fleet size, fielding 234 vessels to the U.S. Navy’s 219.
With domestic ship production amounting to just 0.4 percent of China’s annual output, Washington is turning to allies with robust shipbuilding capabilities. The administration has also announced plans to levy hefty fees on Chinese vessels entering U.S. ports, citing supply chain risks.
In a call on Nov. 7, Trump asked President Yoon Suk Yeol to strengthen cooperation not only in ship exports but also in maintenance, repair, and operations.
One company at the center of these efforts is Hanwha Ocean, which recently acquired Philadelphia Shipyard through its subsidiary Hanwha Systems. Hanwha has secured two maintenance, repair, and operations (MRO) contracts with the U.S. Navy, including work on the 40,000-ton dry-cargo ship Wally Schirra and the U.S. 7th Fleet’s Yukon — developments that have heightened interest in the firm’s role.
HD Hyundai Heavy Industries is also reportedly exploring investment opportunities in the United States. The company, which entered the MRO sector in 2022 through work with the Philippine Navy, is now considering investment in U.S. shipyards to expand its foothold.
Both Hanwha and Hyundai secured Master Ship Repair Agreements (MSRAs) with the U.S. Naval Supply Systems Command this year, though these contracts remain limited to MRO.
A new bill introduced by Republican senators on Feb. 5 could change that, potentially allowing the Pentagon to contract naval shipbuilding to allies with mutual defense treaties or NATO member states — an opening that could position South Korea as a builder of U.S. military vessels.
The U.S. aims to construct 364 new warships by 2054, an effort estimated to cost $1.075 trillion, in a bid to counter China’s growing maritime power.
Beyond naval projects, South Korean shipbuilders specializing in liquefied natural gas (LNG) carriers are also anticipating a market boom as the U.S. tightens restrictions on Chinese shipyards.
Industry leaders, including HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean, posted collective operating profits in 2024.
With environmental regulations tightening and tariffs looming over Chinese-made vessels, analysts predict further gains for South Korean firms.
Signs of this shift are already evident: German shipping giant Hapag-Lloyd is reportedly in the final stages of a $1.2 billion deal with Hanwha Ocean for six LNG dual-fuel container ships, choosing the South Korean firm over Chinese competitors, according to the shipping trade journal TradeWinds.
Diplomatic engagements further underscore the sector’s importance.
South Korea’s Minister of Trade, Industry, and Energy, Ahn Duk-geun, recently met with senior Trump administration officials to discuss shipbuilding cooperation, and U.S. Secretary of Defense Pete Hegseth is expected to visit Seoul in late March to advance talks.
Even as Trump's 25 percent tariffs on steel and aluminum imports remain in place, South Korea and the United States have agreed to establish a consultative group to explore tariff measures and deepen cooperation in shipbuilding.
Copyright ⓒ Aju Press All rights reserved.
-
hyu****
2025-03-05 11:24:20
- Like/Dislike
- Like0
- Dislike:0
View more commentssdfsdfsdfsdfsdfsdfsdfsdfsdfsdflksjdlkfjsdkljflksdjflkjsdlkfjlskdjflksdjflksjdflkjsdlkfjslkdjflksdjflksdjflkjsdlkfjsdlkfjlksdjflksdjflksjdfkljsdklfj