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Asia Times
27-05-2025
- Business
- Asia Times
The defense-industrial base and alliances: US Steel and beyond
As last fall's presidential election returns reminded us, massive trade imbalances in products ranging from textiles to automobiles to electronics are making Americans conscious of growing weaknesses in the industrial base of America's heartland. Coupled with rising geopolitical tensions across the Pacific, Europe's first major land war since 1945 made leaders of industrial democracies throughout the world increasingly cognizant of vulnerabilities in America's defense-industrial base. At this time of great transition and uncertainty in global politics, it is important to focus intently on the defense manufacturing crisis and to consider how the United States got here and what might be done. In 1950, US manufacturing produced more than half the industrial product of the entire world. In 1960, America's share was still well over a third. Yet today the American share is less than 16% percent, with the US ranking third as a manufacturing power – behind even Germany, which has a GDP only a third its size. Importantly, the largest global manufacturer – by a considerable margin – is China, with which the US faces an increasingly confrontational geopolitical relationship and on which America relies heavily for manufactured imports. The US does remain dominant in some important manufacturing sectors, most importantly aviation – although China is making advances even there. And the situation is very different in the strategic maritime area, as I point out in my recent book, Eurasian Maritime Geopolitics . Not even 1% of the world's ships are built in the United States – even including production for the US Navy, which requested 2025 budget funds for only six new ships. About five commercial ships are built in the US annually. Over 50% of global shipbuilding is in China, the world's largest producer, with seven of the top ten shipbuilders by order volume being Chinese. The Chinese navy now boasts, by a substantial margin, the largest fleet in the world. Even more ominously, future US defense-production capacity is eroding when its expansion is greatly needed. The average US Navy vessel today is 19 years old. Of the vessels in China's navy, by contrast, 70% have been launched since 2010 – and China's production base is expanding much more rapidly than American. The situation is similar in shipping and in port development. Three of the top ten shipping companies in the world are Chinese. America's largest, the Matson Line, is ranked 28th. Similarly, seven of the ten largest ports in the world are Chinese, with China leading the world in computerized container shipping. America's largest ports, at Long Beach and New York City, rank 22d and 24th respectively. Some attribute America's weaknesses in the maritime area to regulatory challenges. The Jones Act, an arcane law requiring that shipping between American ports be in American bottoms, is justified as bolstering national security by strengthening the US shipbuilding and shipping industries – but critics say that overall it has had the opposite effect. Equally damaging to US shipping is the broader weaknesses in basic industry. Highest on the list is the US weakness in basic steel. There America's flagship firm, US Steel, ranks only 28th in global scale. Much was made, on both sides of the Pacific, of former President Joe Biden's 2024 veto of Nippon Steel's bid to acquire US Steel. Although no doubt short-sighted from an economic standpoint, Biden's stance – similar to that of Donald Trump before his election – was understandable in political terms. US Steel, after all, is the US industrial flagship firm, founded by Andrew Carnegie in 1903, and headquartered in Pennsylvania, the most consequential US swing state of 2024. In a Presidential election year, with the United Steel Workers of America vehemently opposed – if not many local affiliates – it was not surprising that such an iconic firm would be a lightning rod for protectionist impulses. Yet amid the heated debate over US Steel's future course, it is important not to lose sight of the truly crucial national-security issue: the future of America's defense industrial base. Donald Trump's historic May, 2025 reversal – to support Nippon Steel's acquisition, on condition of $14 billion in added investment; an all-American board of directors; and continuation of the US Steel name and Pittsburgh headquarters – was an important step forward in that regard. Reviving America's steel, shipbuilding, shipping, precision-machinery, and capital-goods manufacturing sectors, to name a few, will be a crucial imperative in coming years, given the challenge of China and other competitors. And steel-industry revival will be fundamental to basic-industry revival more generally – not least on the seas. Such Technology and capital, provided largely by the private sector, supported by plausible market dynamics, will be crucial imperatives. Tariffs alone cannot possibly revive American maritime manufacturing. Particularly in the maritime sectors, and potentially in steel and some machine-building sectors as well, democratic allies will almost inevitably be a primary source of both technology and capital, as well as production volume. Strategic advantage in these basic sectors, after all, accrues to those who operate at scale. And China today in the maritime sectors has scale. The US needs its allies to help achieve that, and to move toward integrated capacity at optimal scale. In an era of potentially protracted conflict, as the experience of the Ukraine war suggests, production scale and capacity are looming larger than heretofore. Apart from China, the largest and most productive shipbuilders in the world are all in Japan and South Korea, supplied by their own productive, efficient steel sectors. Their expertise and investment will almost certainly be crucial to the revival of the US maritime industrial base. A ship under construction at a graving dock in the Philly Shipyard in Philadelphia, Pennsylvania, USA. Photo: Philly Ship Indeed, that process has already begun. In 2024 Japanese and South Korean firms agreed to repair US Navy vessels and in December a Korean firm acquired and began rebuilding the Philadelphia Naval Shipyard, which produced some of the US Navy's most powerful capital ships during World War II. Moving to the future, both sides of the Pacific need to build on lessons of the US Steel case – especially the importance of trans-Pacific cooperation in the rebuilding of America's defense-industrial base. Governments themselves need to take a longer view, and to grasp the vital importance to national security of cooperation among allies that does not compromise sovereignty or deeply held values. With the transition to leadership in Washington, and major trans-Pacific summits impending, now is the time both to learn from the past and to let partners play a role in helping to make American manufacturing great again. Kent Calder is Director of the Reischauer Center for East Asian Studies at Johns Hopkins University SAIS, former Special Advisor to the US Ambassador to Japan and the recent author of Eurasian Maritime Geopolitics (Brookings, 2025).
Yahoo
19-05-2025
- Business
- Yahoo
American Waterways Operators Elects Patrick Sutton of ACBL as Chairman
ARLINGTON, Va., May 19, 2025 /PRNewswire/ -- The members of the American Waterways Operators, the national tugboat, towboat and barge industry association, elected a new slate of leaders last week during the association's Spring Convention and Annual Membership Meeting. Patrick Sutton, Senior Vice President, Business Development and Planning, American Commercial Barge Line (ACBL), was elected Chairman of the Board of Directors; Matt Woodruff, Vice President of Public & Government Affairs, Kirby Corporation, was elected Vice Chairman; and Brian Hughes, Vice President Operations & Sales, Hughes Bros. Inc., was re-elected Treasurer. Mr. Sutton succeeds outgoing Chair Kelly Teichman, Executive Chairman, T&T Marine. AWO President & CEO Jennifer Carpenter commented: "The tugboat, towboat and barge industry is a vital contributor to America's economy and security, and member leaders like Kelly Teichman and her predecessors have been pivotal to elevating this industry and telling its impactful story. Patrick Sutton is a strong, articulate leader whose experience, thoughtfulness and dedication will be critical to propelling those efforts forward and helping us navigate the challenges and opportunities of today's dynamic environment. We look forward to the coming year under his leadership." Mr. Sutton highlighted the importance of adaptability and unity in today's environment: "We are living through a critical time for our industry – a time of political transition, economic turbulence, geopolitical uncertainty, and constant, rapid change. Now more than ever, we need to be adaptable in ways that allow us to adjust to unpredictability and seize opportunities, and we need to speak as one unified, strategic voice as we make our case to the Trump Administration, Congress, and the Coast Guard." He also underscored AWO's foundational priorities in the year ahead: "Operating safely must remain the highest priority for all of us – not only because it's our sacred obligation to ensure that our mariners return home safely to their families, but also because safety inspires confidence in what we do. We must also continue to safeguard the Jones Act, the foundational law that ensures the viability of American maritime, and with it, our country's national, economic and homeland security. And we must continue to prioritize building a regulatory environment that promotes, and does not inhibit, safety, efficiency and innovation." Mr. Sutton concluded by emphasizing the need for member engagement: "Staying true to our guideposts and embracing the opportunities that this changing environment affords us – that's how we'll continue to grow our critical industry and tell our story…but even with all these capabilities, AWO cannot be fully effective without maximum member engagement, and that's my challenge to all of our members." About the American Waterways Operators The American Waterways Operators is the tugboat, towboat and barge industry's advocate, resource and united voice for safe, sustainable and efficient transportation on America's waterways, oceans and coasts. Industry vessels move more than 665 million tons of America's commerce each year on the U.S. inland and intracoastal waterways, the Atlantic, Pacific and Gulf Coasts and the Great Lakes. For more information about the importance of waterway transportation, please contact AWO at (703) 841-9300 or visit AWO's website at View original content to download multimedia: SOURCE American Waterways Operators Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Automotive
- Yahoo
Trucking leaders applaud Trump executive order requiring truckers speak English
On Episode 832 of WHAT THE TRUCK?!?, Dooner is sharing the trucking industry's reaction to Trump's executive order requiring truck drivers to speak and understand English. The order rescinds a 2016 FMCSA memo that effectively eliminated roadside enforcement of English proficiency. Adil Ashiq is a former U.S. Merchant Marine captain-turned-supply chain and maritime industry nerd. We'll find out how to navigate tumultuous trade waters. We'll look at maritime employment and the Jones Act. CloneOps' David Bell talks about who the winners and losers will be in AI lead communication for logistics service providers. Plus, some auto tariffs hit reverse; rate the strap work; 100 truckers vs 1 gorilla, and more. 3:27 Trucking leaders applaud English language Executive Order 12:25 Auto tariffs in reverse? | Craig Fuller 16:14 FreightTech adoption | David Bell 24:51 100 truckers vs 1 gorilla 26:37 Rate the strap work 27:37 Show me the tariffs | Capt. Adil Ashiq 39:57 Maritime policy | Capt. Adil Ashiq 43:25 100 seamen vs 1 gorilla Catch new shows live at noon EDT Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM's Road Dog Trucking Channel 146. Watch on YouTube Check out the WTT merch store Visit our sponsor Subscribe to the WTT newsletter Apple Podcasts Spotify More FreightWaves Podcasts The post Trucking leaders applaud Trump executive order requiring truckers speak English | WHAT THE TRUCK?!? appeared first on FreightWaves.
Yahoo
30-04-2025
- Business
- Yahoo
Top 5 things you never knew about Hawaiʻi's hidden lifeline
HONOLULU (KHON2) — Most people don't think much about how their food, clothes, automobiles or electronics get to them. But behind every item we use, there's a long, complex journey. April 29 is National Supply Chain Day, and it's a great time to learn more about how products move around the world and why this system matters so much. In Hawaiʻi, the supply chain is especially important. The islands depend on imports for almost everything since about 98% of all goods used in Hawaiʻi come from somewhere else. This makes the state one of the most supply chain–dependent places in the United States. National Supply Chain Day reminds us how fragile and powerful this system is and how each link in the chain affects everyone. Here are the top five things to know about the supply chain and why this day matters more than you might think. A supply chain is the system that moves goods from where they're made to where they're used. That includes packing, shipping, storing and delivering. Every item you use — whether it's your toothbrush, slippers or school lunch– got to you through this process. Even products made in Hawaiʻi often rely on materials being imported via the supply chain. The day's message is simple: 'Every link in the supply chain matters.' If even one part breaks down, it can affect the whole system. Hawaiʻi is in the middle of the Pacific Ocean. That places us more than 2,000 miles from the nearest continental port. Because of this, almost everything here is imported, often by cargo ship. That includes food, gasoline, building supplies, clothes, automobiles, medical equipment/supplies/pharmaceuticals and even school supplies. Most of these goods come through Honolulu Harbor, the busiest port in the islands. From there, products are shipped by barge to other islands. This system works well most of the time. But when there's a problem — like a storm, port delay or global shortage — Hawaiʻi can feel the effects quickly. Stores might run low on items, and prices can go COVID-19 pandemic showed how fragile the supply chain can be. Shipping delays and labor shortages caused backups all over the world. In Hawaiʻi, residents noticed longer wait times for items like furniture, bicycles and even toilet paper. One reason Hawaiʻi's supply chain is more complicated than most is a law called the Jones Act. Passed in 1920, this law says that only U.S.-built, U.S.-owned and mostly U.S.-crewed ships can carry goods between U.S. ports. That means if something is shipped from California to Hawaiʻi, it must be on a ship that follows these rules. Supporters of the Jones Act say it protects American jobs and national security. But critics say it limits competition and raises prices, especially in places like Hawaiʻi and Puerto Rico. Some lawmakers have suggested making exceptions for non-contiguous states and territories, but no major changes have been made. The law is still a big part of Hawaiʻi's supply chain story and an important part of the debate over cost of living in the islands. Large ships and trucks are part of the reason products can travel across the world. But they also cause pollution. Cargo ships burn heavy fuel, which releases carbon into the air. Plastic packaging and spilled cargo can also end up in the ocean. Some companies are trying to fix this. They're using cleaner fuels, creating zero-emissions ships, and reducing wasteful packaging. Ports like Honolulu are exploring ways to become more energy efficient and environmentally friendly. On National Supply Chain Day, people are encouraged to think about how to make the system more sustainable. That means finding ways to meet the needs of today without hurting the planet for future generations. Even though you might not work on a dock or drive a delivery truck, you're still part of the supply chain. Every time you buy something, you create demand. And every time you recycle, reuse or reduce what you throw away, you help the system work better. You can also make a difference by choosing local products. Supporting Hawaiʻi-grown food or locally made goods helps shorten the supply chain, reduce emissions and build a stronger local economy. National Supply Chain Day is a good time to learn, reflect, and take action. The more we understand how this global system works, the better we can improve it for ourselves, our communities and our ʻāina. In Hawaiʻi, we rely on ships and planes to bring us most of what we need. That means the supply chain isn't just some faraway system, and it's something that affects us every day. April 29 is a chance to say mahalo to the workers who make it all happen. It's also a reminder that we need smart, fair and sustainable systems to keep our islands thriving. Get news on the go with KHON 2GO, KHON's morning podcast, every morning at 8 So, next time you open a box or grab something off a shelf, remember that it took a whole chain of people and processes to get it to you. And you're part of that story, too. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CNA
28-04-2025
- Business
- CNA
South Korea rules out tariff deal with US before Jun 3 snap election
SEJONG, South Korea: A senior South Korean government official ruled out on Monday (Apr 28) that Seoul would agree to a trade package with Washington by the time the country holds a presidential election on Jun 3, and flagged challenges to reaching a deal even before early July. The countries last week agreed to craft a trade package aimed at removing new US tariffs before a pause in reciprocal tariffs is lifted on Jul 8, Seoul's delegation in Washington said after their first formal tariff talks on Thursday. Political analysts noted, however, it may be difficult for South Korea to make any firm commitment on big energy projects and defence costs as it currently has an acting president in power. South Korea will hold a snap election on Jun 3 after former President Yoon Suk Yeol was ousted for his role in imposing martial law briefly in December. It is "theoretically impossible' for the two countries to decide on a comprehensive trade package by late May or early June, Park Sung-taek, Vice Minister of Trade, Industry and Energy, told reporters. 'We fully explained our political situation to the US during our latest talks. The US side also understands that Korea's special political situation could be a limiting factor in negotiations." The United States has prioritised talks with key trading partners and allies like Japan, Korea and India, as Washington is scrambling to seal a flurry of trade deals before its Jul 8 deadline. "We all are taking the uncharted territory," Park said. "To be honest, I think it would be very challenging for the talks to bear some fruit within the next 70 days despite President Trump's expectations," he said. South Korea said it has requested exemptions from reciprocal tariffs and tariffs on autos and steel and other items, and offered cooperation on shipbuilding and energy and in addressing trade imbalances. Park said the United States needs to remove red tape to facilitate bilateral cooperation in shipbuilding, pointing to the example of the Jones Act, a US law that requires goods moved between US ports to be carried by ships built domestically and staffed by US crews. He said South Korea was in talks to send a working-level delegation to Alaska to review the business feasibility of a US$44 billion liquefied natural gas project that Washington wants to fund with investments from countries like South Korea and Japan. South Korea is looking to create about six working groups with the United States under three areas on the agenda - exemptions to tariffs and non-tariff measures, economic security, as well as investment cooperation - with a plan to kick off meetings next week, Park said.
