The US is betting on its ally South Korea to help bail out its crippled shipbuilding industry.y
South Korean shipbuilding company Hanwha Ocean recently announced its acquisition of a former naval shipyard in Philadelphia.
Along with the shipyard deal, valued at $100 million, Hanwha secured its first maintenance and repair contract with the US Navy.
The US shipbuilding industry has become notorious for years-long delays and cost overruns. Washington's allies South Korea and Japan are the world’s largest shipbuilders, and hopes are that they could boost production of both commercial and naval vessels.
But stark new figures show that even with support from Asian firms, it could take the US years to close the gap with China in maritime power.
Screenshot of chart showing how China dominates the ship building industry.
© Photo : United Nations Conference on Trade and Development
Last year, China had orders for 1,794 large commercial ships, South Korea had 734, Japan had 587 — but the US had just five.
While China commands 40 percent of global commercial shipbuilding output, the US accounts for less than one percent.
China had over 5,000 oceangoing commercial vessels in early 2023, while the US-flagged merchant fleet had only 177.
China's shipbuilding capacity is over 200 times that of the US, according to a US Naval Intelligence chart cited by media.
Screenshot of chart showing relative Chinese and US shipbuilding capacity.
© Photo : U.S. Navy
The struggle to prop up the floundering US shipbuilding base comes as the US Navy has released its plan for a potential military conflict with China by 2027.
Announcing the Navigation Plan for America’s Warfighting Navy, US Chief of Naval Operations (CNO) Admiral Lisa Franchetti referred to China as a “pacing challenge” and a “complex, multi-domain and multi-axis threat.”
The plan includes streamlining maintenance for warships, submarines and aircraft, eliminating delays and restoring “critical infrastructure that sustains and projects the fight from shore.”