U.S. Labour Unions Urge Congress To Pass SHIPS Act To Revive Domestic Shipbuilding

Five major U.S. labor unions are urging Congress to approve the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act. The bill aims to secure long-term funding to rebuild U.S. shipbuilding. Their appeal comes ahead of a new policy that will impose port fees on Chinese-linked vessels visiting U.S. ports starting October 14.

Introduced in April, the SHIPS Act seeks to establish a Maritime Security Trust to use revenue from the new port fees to improve maritime security, upgrade infrastructure, and revitalise U.S. shipyards. The bill has bipartisan support, with Senators Todd Young (Republican, Indiana) and Mark Kelly (Democrat, Arizona) sponsoring it, but progress in Congress has stalled.

The port fees are part of a larger trade and security plan. Final rules from the U.S. Trade Representative are still pending, but analysts estimate that China’s COSCO Shipping could face fees up to $1.5 billion in 2026. These fees will target vessels linked to China docking at U.S. ports, a significant change in trade policy.

Union leaders, including the United Steelworkers and the International Brotherhood of Electrical Workers, stressed in a joint letter to Congress that the SHIPS Act is critical to securing reliable funding for shipbuilding and maritime infrastructure. They urged lawmakers to act quickly.

Michael Wessel, president of the Wessel Group consulting firm, said the U.S. already maintains trust funds for airports and highways that guarantee steady funding for maintenance and development. He said shipbuilders need a similar framework to ensure long-term capital for industry revival.

Wessel also coordinated a union-requested investigation under Section 301 of the Trade Act of 1974 into China’s maritime activities. That investigation found China uses unfair trade practices to dominate shipping.

If passed, the SHIPS Act could provide steady funding for shipyard development and help rebuild U.S. shipbuilding capacity. However, despite bipartisan support, lawmakers have not yet advanced the bill.

Reference: Reuters

Source: Maritime Shipping News