The United States continues to depend primarily on ocean borne shipments for its international trade. Nearly 11 billion tons of global merchandise trade were moved by water in 2022, while another 1.1 billion tons of cargo were carried in domestic waterborne movements serving more than 90 percent of the U.S. population. Domestic maritime transportation remains a vital component of the nation’s transportation network, moving major commodities such as crude petroleum, raw materials, coal, chemicals, and farm products through the Great Lakes, inland waterways, and coastwise trades.

The United States once relied on a huge fleet of relatively small ships to provide the commercial and sealift shipping capacity appropriate for its trade. Since the end of World War II, the U.S.-flag vessel fleet has been in a continual state of decline. As of 2022, the United States ranked among the world’s top 25 merchant fleets by gross tonnage after moving above 25th in the United Nations’ rankings of leading flags of registration by country of owner. While the U.S. fleet’s global standing has improved modestly, U.S.-flag vessels still carry less than five percent of the nation’s ocean borne commercial foreign trade by weight. Other traditional maritime powers have experienced similar declines.

While the number of vessels in the U.S. fleet has shrunk, at the same time many nations have built an international maritime presence as a means of projecting visibility and earning hard currency. These registries may not require the same level of protection for seafarer health, welfare and safety as on U.S.-flag vessels. Often, foreign-flag vessel owners do not pay any corporate income taxes on revenues earned in U.S. foreign commerce, and the crews frequently do not pay income taxes to any country. By comparison, vessels operating under the U.S. flag are subject to all the taxes and regulatory laws applicable in the United States.

Changes in maritime technology and reductions in crew sizes have contributed to a contraction of the industry’s supply of vessels and manpower.

The U.S.-flag industry continues to invest in the expansion and modernization of the fleet. Philly Shipyard is constructing five National Security Multi-Mission Vessels for Kings Point and the state maritime academies, followed by three containerships for Matson. Crowley Maritime Corporation had two LNG powered Container Roll-On/Roll-Off (ConRo) vessels built by VT Halter Marine. In addition, in 2018 Matson took delivery of the largest containership built in the United States, christened the DANIEL K. INOUYE (DKI), the first of two new Alaska class containerships. TOTE Maritime Puerto Rico is noted for building the first and largest LNG-powered container vessels in the world. As of March 2026, MARAD counted 188 U.S.-flag, self-propelled, oceangoing merchant vessels of 1,000 gross tons or more. Of those 188 vessels, 92 were Jones Act eligible. MARAD also classified 170 as militarily useful. Also, a number of ferries and tugboats have recently been delivered with new orders also contracted for delivery in the future.

The maritime issues and challenges facing the nation are significant and complex. The present and future ability of the U.S.-flag fleet to serve as a contributor to economic sovereignty and national security remains a challenge. Changes in world political trends and economies occur constantly. The 104th Congress understood the precarious situation the Nation faced when it overwhelmingly adopted the Maritime Security Act of 1996. This measure established the Maritime Security Program to support a fleet of militarily useful U.S.-flag commercial vessels and American-citizen crews necessary for the military and economic security of the Nation. In 2003, Congress reaffirmed its support for the U.S.-flag fleet by expanding the fleet to its current contingency of 60 vessels.