The United States is facing a well-recognized shipping crisis. From military commands and Congress to maritime analysts and the White House, there is growing awareness of America’s dwindling maritime capacity. The country appears ready to address the problem but largely on its own. While there have been occasional gestures toward bilateral cooperation in shipbuilding, the U.S. has yet to pursue a comprehensive, multilateral strategy to counter China’s dominance in global shipping. That approach must change. A coordinated, multinational effort is essential to secure maritime trade routes and build the sealift capabilities required for sustained expeditionary combat operations.

At the heart of the issue is the stark disparity between U.S. and Chinese maritime strength. The U.S.-flagged merchant fleet stands at just 185 ships, compared to China’s 7,838 (including Hong Kong). In 2023, the U.S. accounted for only 0.1% of global shipbuilding, while China produced over half—50.7%. By 2024, U.S. companies owned just 2.16% of the world’s merchant fleet; China held 19%. This imbalance gives China significant economic leverage during peacetime and leaves the U.S. without the maritime infrastructure to support sustained military operations if conflict arises.

The U.S. is not alone in facing this challenge. Australia, a key ally, finds itself in a similar position. Nearly all of Australia’s trade 99% moves by sea, generating 45% of national income. Yet, most of this is carried by foreign-flagged and foreign-owned vessels. In 2021, over 6,100 foreign ships docked at Australian ports, while only four Australian-flagged vessels engaged in international trade all LNG carriers.

Recognizing the vulnerability, the Australian government under Prime Minister Anthony Albanese has committed to building a “Strategic Fleet” of privately owned, Australia-flagged vessels. A 2023 government report outlined the problem and proposed solutions similar to those emerging in the U.S., such as subsidies, cargo preference policies, and workforce development initiatives—all aimed at revitalizing domestic maritime capabilities.