The Trump administration is exploring a proposal to establish an international shipping registry in the U.S. Virgin Islands (USVI), aiming to expand the American-flagged commercial fleet. This move could enhance national security by reducing U.S. reliance on foreign ships during wartime and strengthen the country’s maritime capabilities.
Why the Proposal Matters
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Strengthening National Security:
The current U.S.-flagged fleet comprises just 187 ships, with only 80 engaged in international trade. In contrast, China controls more than 5,500 ships. By increasing the number of American-flagged vessels, the U.S. can bolster its sealift capacity for military logistics during conflict. -
Strategic Use of the USVI:
According to Eric Dawicki, president of the Center for Ocean Policy and Economics (COPE), using the USVI as a flagging jurisdiction would offer a U.S.-controlled registry with fewer restrictions than the traditional U.S. flag. Ships could be foreign-built and crewed by non-U.S. citizens, reducing costs and attracting more shipowners.
Key Features and Tensions
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Reduced Regulatory Burden:
Unlike the traditional U.S. flag, which requires American ownership, U.S. shipyards, and U.S. crews under the Jones Act, the USVI registry would allow more flexible standards. -
Union Concerns and Domestic Pushback:
While the plan may appeal to shipowners, it faces expected resistance from labor unions and advocates for revitalizing domestic shipbuilding, who worry it may undermine U.S. jobs and industrial capacity. -
Historical Context and Legislative Support:
In past conflicts, including the Gulf War, the U.S. had to rely on foreign-flagged ships. COPE argues this is a “strategic vulnerability.” Recent legislative efforts like the SHIPS for America Act aim to secure long-term funding for U.S. shipbuilding and could work in tandem with the USVI registry initiative.
Challenges Ahead
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Political and Regulatory Hurdles:
The proposal is currently under review by the National Security Council. It has not yet garnered formal backing from key lawmakers or the White House. Some experts, like Professor Salvatore Mercogliano, suggest the registry may struggle to gain traction without broader support for U.S. fleet expansion. -
Decline of U.S. Shipbuilding Infrastructure:
With only around 20 active shipyards today, compared to over 80 post-WWII, a revitalized U.S. maritime industry faces an uphill battle without significant investment.
The proposed USVI international shipping registry offers a potential path to expand the U.S. maritime fleet at lower costs, strengthening national security. However, it faces political, economic, and ideological challenges—particularly from those committed to reviving domestic shipbuilding and protecting American maritime labor.
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Source: Reuters
