- The US Merchant Marine has gradually shrunk since the 1950s and 1960s due to competitiveness problems and lack of a clear national maritime policy.
- Flags of convenience from countries like Panama, Liberia, and the Marshall Islands dominate global shipping by offering lower taxes and weaker regulations.
- The report calls for a major reset of maritime policies and suggests the UK should adopt a strong cabotage policy and rebuild its fleet strategy, while the US should strengthen the Jones Act and create a national maritime plan.
A recent report by Nautilus International and the International Organization of Masters, Mates & Pilots has highlighted a significant decline in merchant fleets and seafarer numbers among NATO member countries. This reduction may weaken NATO’s ability to respond effectively to global conflicts, putting its core Article Five commitment at risk. The report warns that without action from member states to address these issues, NATO’s capacity to deploy necessary forces and assets could be severely limited. The study follows a presentation to NATO’s transport committee, where leaders from both organizations promised to provide detailed evidence of the declining maritime capabilities within the alliance.
Maritime Decline in the UK and US and Policy Challenges
The report highlights a sharp decline in the UK’s merchant fleet and seafarer numbers, despite policies since 2000 aimed at supporting growth and skills development. These measures have only stabilized the situation without reversing the trend. It notes that many vessels under the UK tonnage tax are foreign-flagged, with most crew also foreign, while the training of UK cadets remains far below the required level to sustain the fleet.
Similarly, the US Merchant Marine has been in gradual decline since the mid-20th century due to competitiveness issues and the absence of a coherent national maritime policy. Although the Jones Act protects domestic shipping, the international fleet has significantly shrunk.
The dominance of flags of convenience, especially in Panama, Liberia, and the Marshall Islands, is identified as a major factor undermining traditional maritime nations. These registries benefit from lower taxes and weaker regulation, challenging the ability of bona fide flag states to enforce laws effectively.
To address these challenges, the report recommends a full overhaul of maritime policies. For the UK, it suggests introducing a robust cabotage policy, reconsidering the status of the Red Ensign Group, and developing a clear strategy to rebuild the UK flag. For the US, it advocates for strengthening the Jones Act and creating a comprehensive national maritime policy focused on fleet growth, training, recruitment, and industry support.
Both union leaders stressed the urgency of long-term policy action and international cooperation, especially given the increasing global tensions and the growing maritime power of China. The issue is particularly pressing amid criticism of NATO members’ defense spending.
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Source: Nautilus
