Shipbuilding Industry Explained: The U.S. View
The United States depends on ships but barely builds them. According to a Congressional Research Service report updated in August 2026, ships carried 79.2% of U.S. goods trade by weight and 42.4% by value in 2024, yet U.S. industry accounted for just 0.04% of global shipbuilding tonnage and 1.9% of world fleet ownership. China went the other way: its share of global shipbuilding tonnage rose from under 5% in 1999 to 54.6% in 2024, and Chinese yards held about 71% of global orders by gross tonnage in 2025. China also makes 95% of the world's shipping containers and over 70% of ship-to-shore cranes. Washington responded with a Section 301 case. In 2025 the U.S. Trade Representative imposed port fees on Chinese-owned and Chinese-built ships and tariffs of 100% on Chinese cranes and chassis. In November 2025 both countries suspended their port fees for one year, delaying the U.S. measures until November 10, 2026. Congress is considering bills to revive U.S. shipbuilding, and some members warn that thin shipyard capacity weakens U.S. naval readiness.
- U.S. share
- CRS: U.S. built 0.04% of global shipbuilding tonnage
- China share
- China's share of global shipbuilding tonnage was 54.6% in 2024
- Port fees
- U.S. port fees on Chinese ships suspended until November 10, 2026
How the chain works
The U.S. and China in shipping (CRS, August 2026)
| United States | China | |
|---|---|---|
| Share of global shipbuilding tonnage | 0.04% | 54.6% in 2024 |
| Share of world fleet ownership | 1.9% by capacity | 20.2% in 2024 (with Hong Kong) |
| Share of new ship orders | Not reported in this source | About 71% by gross tonnage in 2025 |
| Port equipment | Imports cranes and chassis | Over 70% of ship-to-shore cranes, 86% of chassis |
A trade lifeline built abroad
According to the Congressional Research Service, ships carried 42.4% of U.S. goods trade by value, about $2.2 trillion, and 79.2% by weight, about 1.7 billion tons, in 2024. Yet U.S. industry held 1.9% of world fleet ownership by capacity and only 0.04% of global shipbuilding tonnage.
China's rise was rapid. Its share of global shipbuilding tonnage grew from under 5% in 1999 to 54.6% in 2024, and Chinese shipbuilders held about 71% of global orders by gross tonnage in 2025, up from 57% in 2023; about 90% of their 2025 output was for export. By 2024 China led production in every ship category except gas carriers.
The Section 301 case
Acting on a 2024 petition from five U.S. labor unions, the U.S. Trade Representative found China's shipbuilding practices actionable in 2025. The CRS notes estimates of Chinese government support of $91 billion over 2006–2013 and $132 billion over 2010–2018, and USTR judged that shipbuilding gains support China's naval capabilities.
The remedies included port entry fees of $50 per net ton for Chinese-owned or -operated vessels, rising to $140 by 2028, and $46 per net ton or $120 per container for foreign carriers using Chinese-built ships, plus tariffs of 100% on Chinese ship-to-shore cranes and chassis. In November 2025 both sides suspended port fees for one year, and the U.S. suspended the tariffs, delaying the remedies until November 10, 2026. China had answered with its own duties on ships with 25% or more U.S. ownership.
Rebuilding capacity
Congress is considering several bills to revive U.S.-flag shipping and shipbuilding, including H.R. 3151/S. 1541, along with related sectors such as steel. Some members argue that U.S. shipbuilding capacity shortfalls affect the country's defense posture.
Rebuilding takes years: shipyards need skilled workers, steel, engines and equipment suppliers, and steady orders. Fees on Chinese-built ships could also raise shipping costs for U.S. importers and exporters if carriers pass them on.
How the U.S. view differs from the China view
The Chinese version of this page looks at the world's largest shipbuilder: Chinese yards win most new orders, and their profits depend on shipping cycles, steel costs and environmental rules that push demand for new, cleaner ships.
From the U.S. side shipbuilding is a national-security and trade-policy question. The U.S. relies on foreign-built ships for most trade and has very little commercial capacity, so policy focuses on fees, tariffs and subsidies to rebuild it.
2025–2026: port fees, then a truce
In 2025 USTR imposed fees on Chinese-owned and Chinese-built ships calling at U.S. ports and tariffs on Chinese cranes and chassis, following its Section 301 findings.
China retaliated with fees on U.S.-linked ships. In November 2025 both sides suspended their port fees for a year.
The suspension runs to November 10, 2026. The episode showed how dependent U.S. trade is on Chinese-built ships, and how hard it is to change that quickly.
- U.S. trade depends on ships the U.S. does not build.
- Port fees are a lever, but they also raise costs for U.S. shippers.
- Rebuilding shipyards is a multi-year industrial project.
Common misreadings
MythThe U.S. builds a meaningful share of commercial ships.
RealityCRS puts the U.S. share of global shipbuilding tonnage at 0.04%.
MythShipping matters little for U.S. trade.
RealityShips carried 79.2% of U.S. goods trade by weight in 2024.
MythThe port fees on Chinese ships are in force.
RealityThey were suspended in November 2025 until November 10, 2026.
MythChina only builds cheap, simple ships.
RealityBy 2024 China led production in every ship category except gas carriers.
Policy, trade and defense: scenarios
| Scenario | Main effect | How it passes through |
|---|---|---|
| Port fees resume after November 2026 | Carriers using Chinese ships | Higher shipping costs, fleet reshuffling |
| Suspension extended | Trade flows | Status quo continues |
| Shipbuilding bills pass | U.S. shipyards | Subsidies and orders for U.S.-built ships |
| Allied yards invest in the U.S. | Capacity | Faster revival with foreign know-how |
| Navy budgets rise | Defense yards | More naval orders, labor shortages |
| Global shipping slump | Ship orders | Fewer new orders worldwide |
Supply and demand by segment
| Segment | Supply rigidity | Concentration | New demand | Policy role | What to watch |
|---|---|---|---|---|---|
| Commercial shipbuilding | Very high (yards, labor) | Very high (China) | Low | Very high (Section 301) | Order share |
| Port equipment | High | Very high (China) | Low | Very high (tariffs) | Tariff status |
| Naval shipbuilding | Very high | High (few U.S. yards) | Yes | Very high | Navy budgets |
| Shipping operators | Medium | Medium | Low | High (port fees) | Fee decisions |
Supply rigidity: how long new capacity takes and whether money can speed it up. Concentration: whether output sits in a few countries or companies. The more rigid and concentrated, the more prone to shortages.
How to track it
| Indicator | What it tells you | Where to find it |
|---|---|---|
| Section 301 shipbuilding actions | Fees and tariffs | USTR announcements, free |
| CRS shipbuilding reports | Policy and data summary | Congressional Research Service, free |
| Shipbuilding legislation | Support for U.S. yards | Congress.gov, free |
| Steel | Main material for ships | U.S. view: steel |
Sources
Last updated 2026-10-18.