13: The U.S. Is Underperforming in Global Shipping, and It’s Dangerous (feat. Michael Roberts)
Nov 15, 2023
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Michael Roberts, Senior Fellow at [organization], expert in global shipping and national security threat, reveals the national security threat posed by China's dominance in global shipping. The US is falling behind and reliant on Chinese-connected supply chains that can be weaponized against us. He discusses the importance of secure supply chains in modern conflicts and proposes a solution for a more reliable supply chain.
China's dominance in the global shipping industry poses a national security threat to the US due to its control over key marine terminals and the potential to manipulate supply chains.
The US needs to invest in its maritime industry, particularly shipbuilding, to improve supply chain security and ensure national readiness.
Deep dives
The State of the US Maritime Industry
The US maritime industry, particularly shipbuilding, is at a disadvantage compared to other countries. China has emerged as a dominant force in the maritime industry, with a fleet of over 10,000 commercial ships and control over key marine terminals worldwide. This poses a significant risk to US supply chains, especially in the event of a conflict in the Western Pacific, as China could manipulate or shut down these supply chains. The report highlights the need for the US to improve its maritime industry to address these challenges and ensure national security.
Components of the Maritime Industry
The maritime industry consists of shipping services and shipbuilding. Shipping services involve transportation on international and domestic markets, while shipbuilding focuses on the manufacturing of ships. The commercial shipping sector operates under an open registry system, allowing any company worldwide to establish a ship and hire inexpensive labor. This has affected the competitiveness and size of the US maritime industry. Shipbuilding, on the other hand, requires policy solutions to retain American workers and compete with low-cost labor countries like Japan, South Korea, and China.
Foreign Dominance and US Vulnerability
Countries like Japan, South Korea, and China have dominated the maritime industry, especially in shipbuilding, due to low-cost labor and government support. China's emphasis on maritime power has established its position as a maritime powerhouse. China, along with Japan and South Korea, accounts for the majority of global commercial ship deliveries. This foreign dominance poses a weakness for the US, especially in terms of supply chain security. China's control over marine terminals and their ability to manipulate supply chains can have severe consequences for the US economy.
Challenges and Solutions for the US
The US maritime industry needs to address the growing threat from China by scaling up its capacity. A crucial aspect is increasing the number of US mariners involved in deep-sea commercial trades to meet national security requirements. This requires investment in training programs and workforce development to attract more individuals to the industry. Additionally, the report proposes the establishment of a second American registry to have a controlled fleet of non-US crude ships that can address secondary security roles. The report emphasizes the need for political will and resources to support the growth and readiness of the US maritime industry.
Senior Fellow Michael Roberts joins the show to reveal exactly how far ahead China is of the rest of the world when it comes to shipping and why its a national security threat flying under the radar. The U.S. is falling behind and increasingly reliant on Chinese-connected supply chains that could be weaponized against us at a moment's notice if China had the desire. Roberts lays out how we got here, and walks through his recent report paving a way forward for the U.S. shipping industry.
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