American trade is held hostage by a few global shipping companies holding a monopoly on almost all global shipping routes.
The largest cause of inflation since Covid has been a dramatic increase and fluctuations in ocean freight costs.
We have recently seen shipping costs double, triple and then quadruple over a matter of weeks or months.
The effect on global inflation was staggering.
American manufacturers, exporters and consumers have zero independence from these global shipping monopolies and no choice but to pay exorbitant rates at the whim of global companies who collude to raise prices and make huge profit out of crisis, whether it is Covid, the Red Sea route, conflict in Ukraine etc.
If the government incentivized the building of American Cargo and Tanker vessels, crewed and maintained by Americans, serving and subsidizing American interests and competing against the Monopoly there would be many positive results downstream.
- Creation of skills and jobs in shipbuilding and maintenance.
During WW2 American ship builders were able to innovate and produce vessels at an astounding rate, higher than the awful rate of sinking by German U boats blockading the Atlantic.
Tens of thousands of skilled American jobs could be created today as viably as in 1940’s
2)Creation of on-vessel jobs. From captains to engineers, navigation, communication to deck hand, there are many jobs to be created. American Veterans could be prioritized in the industry. - If America is going to “Drill baby drill” they are going to need to “Ship, baby ship” Controlling energy shipment would enhance energy production. Russia has pipelines to Europe; America needs a shipping fleet to compete.
4)American manufacturers can get goods to market on their own terms. - Such a fleet would be able to compete effectively and competitively in the open market, generating a substantial income and profit.
- American shipping can be used to aid friends and allies during times of humanitarian disaster, military and economic crisis.
It can be argued that without it’s early Commercial Maritine ascendency and strength, the history of American Independence and trade would perhaps look vastly different.
Historically, America realized early, that without independent control of its own competitive fleet of cargo vessels, they would never be able to compete or trade equally in a global marketplace.
This is as true in 2024 as it was in 1824.
The geopolitical power such a fleet would offer America cannot be overestimated.
Shipping is the lifeblood of trade.
It should be controlled by America, for America.