Shipbuilding and Repair NAICS 336611

Feb 18, 2026 - White House Releases Shipbuilding Industry Revival Proposal

• The White House’s new Maritime Action Plan lays out proposals to revive US shipbuilding, including new fees on cargo arriving on foreign-built vessels and incentives meant to spur private investment, but offers few details on timing and would require Congress to act on most measures. The plan is intended to signal federal commitment to rebuilding domestic shipyards after decades of decline that have left the US producing less than 1% of the world’s commercial ships. It calls for tools such as maritime prosperity zones and a Maritime Security Trust Fund to help finance new construction and related programs, while supporters in Congress argue it could build momentum for the SHIPS for America Act, which would fund shipbuilding and expand the US-flagged fleet. Industry observers warned, however, that the plan’s impact will depend on follow-through in future budgets and whether lawmakers move quickly enough to turn the proposals into law.
• The swelling ranks of sanctioned “shadow fleet” tankers are becoming a growing headache for the global shipbuilding industry. Hundreds of aging vessels - many more than 20 years old - are stuck in limbo because government sanctions prevent their owners from selling or scrapping them through normal channels. That backlog keeps obsolete ships trading goods well past their safety and economic lives, clogging shipping lanes and dulling demand for new tankers. GMS, the world’s largest cash buyer of ships for scrap, has thrust the issue into the spotlight by seeking US approval to buy and dismantle sanctioned vessels. Its move highlights how sanctions are reshaping fleet economics: capital that would normally flow into newbuild orders is instead tied up in maintaining outdated ships, leaving shipyards exposed to weaker order books even as global trade capacity is oversupplied.

• Container shipping faces worsening overcapacity as new vessel deliveries slow in 2026. About 1.48 million TEUs are scheduled for delivery next year, a 17.7% drop from 2025, according to Sea-web. Global container volumes are expected to rise only 2.5%-3.5% in 2026, down from 4.5%-5.5% growth in 2025, according to shipowner association Bimco. The 1.8 million TEUs delivered this year are already straining absorption as global demand growth slowed to 2.1% by year’s end, per Container Trades Statistics, the weakest pace since February. Larger capacity waves loom, with 2.3 million TEUs due in 2027 and 3.4 million TEUs in 2028. Congestion, diversions, and slow steaming offer limited relief. With only 0.8% of the fleet idled as of mid-November and scrapping near historic lows, carriers are increasingly likely to idle and scrap ships as rates soften and costs rise.
• US commercial shipbuilding is facing a significant decline, producing just 0.1% of global ship tonnage in 2024, according to a Deloitte report, highlighting an inability to compete with heavily subsidized international shipyards. Experts argue that relying on traditional subsidies is not a sustainable strategy; instead, the US should pivot toward emerging sectors such as autonomous vessels, alternative-fuel ships, and “smart” port infrastructure. These areas align with US strengths in AI, IoT, cloud computing, and energy innovation, creating opportunities to attract private investment and stimulate “investable demand.” To achieve this, the report recommends structural changes including the creation of a Maritime Security Trust Fund, development of shared test ranges, and new procurement models that encourage private-sector participation. By focusing on technology-driven shipbuilding and reducing dependence on subsidies, the US could rebuild a competitive and modern maritime industry while addressing both commercial and national security needs.