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Charting a New Course: How Space Strategy Can Save America's Maritime Sector

Maggie Johnson

By Maggie Johnson

December 6, 2024

Image Credit: “SpaceX: Elon Musk unveils spacecraft to ferry astronauts to space,” available at Yahoo Images (12/06/2024).


On the 249th anniversary of the U.S. Navy’s founding, America marked an unexpected achievement—not in the oceans, but in space. On October 13, 2024, SpaceX, led by Elon Musk, successfully landed a rocket booster after launch, demonstrating the technical prowess that has helped reinvigorate American leadership in space exploration. This milestone was more than just a step forward for space technology; it signified the revival of the U.S. space program, which had struggled for years with inefficiency and public skepticism following the Challenger and Columbia disasters.

The juxtaposition of this space achievement with the anniversary of the U.S. Navy’s founding invites reflection on the leadership and strategies that turned the U.S. space program around. These strategies included bold leadership that challenged the status quo, market-driven innovation that pushed technological boundaries, and public-private partnerships that maximized both government and private sector resources. These same principles were integral to the success of the U.S. space sector. They could be pivotal in revitalizing the U.S. maritime sector, steering it back toward global prominence.

The U.S. Maritime Industry in Urgent Decline

Much like the space industry in the late 20th and early 21st centuries, the U.S. maritime sector is grappling with significant challenges. Over the past several decades, shipbuilding capacity has declined, maritime infrastructure has deteriorated, and the U.S.-flagged fleet has shrunk in size and competitiveness. In addition to these issues, the country faces a shortage of skilled labor, affecting both strategic sealift and military shipbuilding capacity. The global shift toward sustainable energy, driven by international policies and market forces, has introduced new challenges in the form of regulatory compliance costs and the need for infrastructure upgrades.

On a global scale, the absence of a unified national policy combining government leadership and industry innovation has hindered the U.S. maritime industry’s ability to compete effectively, particularly against international competitors like China. With its subsidies, low-cost labor, and state-run enterprises, China now commands the world’s largest fleet and the greatest shipbuilding capacity, putting the U.S. at a clear disadvantage.

These structural and geopolitical issues underscore the need for bold leadership and strategic innovation to reinvigorate the U.S. maritime industry. Given that over 90% of global trade and 95% of global data transmissions depend on the seas, the stakes for maritime power are immense. The revitalization of the maritime sector not only ensures national security but also presents significant economic opportunities. Suppose foreign competitors continue to expand their maritime influence while the U.S. falters. In that case, the country must prioritize the maritime commons or risk losing control of vital global trade routes and resources.

Space Policy Lessons for the U.S. Maritime Sector: A Beacon of Hope

While the analogy between space and maritime power is not perfect, the transformation of the U.S. space industry provides a valuable framework for revitalizing maritime power. In the 1990s and early 2000s, the space sector faced a series of crises, including the Challenger and Columbia disasters, outdated technology, and budget cuts that led to inefficiency. NASA needed to work on its approach to innovation and its lack of risk tolerance, which resulted in a stagnant space program.

However, the rise of private companies like SpaceX and Blue Origin signaled a shift toward a more competitive marketplace, where private firms could take risks and push technological boundaries. By embracing public-private partnerships and providing a clear set of goals, the U.S. fostered a resurgence in space exploration, leading to the growth of a thriving domestic space economy. The key lesson is that with clear leadership and effective collaboration between the government and the private sector, even struggling industries can experience a dramatic turnaround.

Similarly, the U.S. maritime sector could benefit from leveraging the strength of public-private partnerships, along with government leadership that sets clear policy goals and creates a conducive environment for industry innovation. The U.S. government must provide a legal framework, infrastructure, and incentives to help the private sector thrive.

The Commons of Space and Sea

Both space and the seas represent domains of the “commons”—areas that are not controlled by any single entity but are fiercely contested by multiple actors. In the case of space, the U.S. has successfully asserted itself as a leader in this domain, focusing on innovation and establishing partnerships that further its interests. The seas, by contrast, are marked by intense competition and territorial disputes, where adversarial actors often undermine U.S. interests. However, both domains share similar characteristics, including the crucial need for strategic planning and the ability to navigate complex challenges.

For the U.S. to maintain its maritime power, it must clearly define its national interests and use all available military, economic, and diplomatic tools to secure them. This could involve increasing the U.S.-flagged fleet, investing in maritime infrastructure, and fostering public-private partnerships. This is especially important as global maritime activities become more contested, with countries like China and Russia aggressively vying for influence over critical sea routes and resources.

Moving from Vulnerability to Vitality

The decline of U.S. maritime power, fueled by foreign competition and policy neglect, highlights the urgent need for a cohesive and proactive maritime strategy. The absence of a comprehensive U.S. maritime policy has allowed competitors to dominate global maritime trade, leaving the U.S. economically and strategically vulnerable. If the U.S. is to restore its maritime power, it must adopt a policy that is as bold and visionary as the one that transformed the space industry.

One stark illustration of this decline is that the U.S. carries just 0.04% of its international trade, relying heavily on foreign shipping. A significant portion of this shipping capacity comes from strategic competitors like China, underscoring the risks posed by the U.S.’s reliance on foreign maritime fleets. This neglect of the maritime economy has left the country vulnerable to shifts in global power dynamics and competition for strategic resources.

However, the lessons from the space program provide a pathway forward. By adopting the same principles that led to the revival of the U.S. space sector—bold leadership, market-driven innovation, and public-private partnerships—the U.S. can reinvigorate its maritime industry, restore its naval power, and strengthen its ability to influence the global commons.

Strategic Maritime Deals to Accelerate Change

To address the maritime sector’s decline, the U.S. must focus on specific actions that can drive meaningful change. These actions should align with the broader goal of revitalizing U.S. maritime power and protecting the nation’s strategic interests.

The Ships Act for America, introduced by Congressman Michael Waltz (R-FL) and Senator Mark Kelly (D-AZ), is one such initiative that seeks to reverse the decline of U.S. maritime power by unleashing the market. With this act in place, there is an opportunity for further action to strengthen the nation’s maritime position, particularly with a new administration that prioritizes global maritime leadership.

One key action for the U.S. president is to look beyond space and embrace the seas as a critical frontier in American grand strategy. This approach would allow the U.S. to counter the growing assertiveness of authoritarian regimes while restoring its global influence and securing vital resources.

The incoming Secretary of State could also establish an M7 Dialogue for Maritime Nations, bringing together key maritime powers to counter rivals like China and Russia and promote shared maritime interests. The Secretary of Transportation could launch a National Waterfront Revival through Maritime Prosperity Zones (MPZs), incentivizing shipbuilding, port modernization, and workforce development.

The Secretaries of Commerce and Energy could broker U.S.-flagged LNG and oil tankers, reinforcing America’s energy dominance while creating thousands of high-skilled jobs. Finally, the Secretary of Defense could modernize the Ready Reserve Fleet, shifting toward a hybrid Voluntary Intermodal Sealift Agreement (VISA) program that leverages commercial ships for military needs, offering more efficiency and flexibility.

A Bold Maritime Vision for the Future

These strategic initiatives offer a blueprint for revitalizing the U.S. maritime sector, ensuring its vital contribution to both the global economy and national security. Success can be achieved by embracing the principles that have revitalized the U.S. space program—bold leadership, market-driven innovation, and effective public-private partnerships. If the U.S. can leverage these principles, it can restore its maritime power, strengthen its naval capabilities, and secure its position in the global commons, ensuring that the seas remain an avenue for American influence and prosperity.


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