![HD Hyundai Heavy Industries' Ulsan shipyard [HD HYUNDAI]](https://imgnews.pstatic.net/image/640/2025/09/24/0000077330_001_20250924184711596.jpg?type=w860)
U.S. unions are backing a bill that would recognize foreign-built vessels as American ships, fueling a wave of optimism for Korean shipbuilders long sidelined by U.S. maritime regulations.
Five major U.S. unions — including the United Steelworkers and the International Brotherhood of Electrical Workers — sent a joint letter to lawmakers urging swift passage of the bipartisan Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, according to a Reuters report on Tuesday.
“We urge you to support the SHIPS for America Act and to schedule action,” the letter said, underscoring organized labor’s rare alignment with foreign industry interests in pursuit of rebuilding the U.S. shipbuilding base. Unions had already pressed lawmakers with a similar appeal in June.
At its core, the SHIPS Act aims to revitalize the U.S. maritime sector, which policymakers and industry experts argue has suffered from decades of neglect. One of its key mechanisms is the creation of a dedicated trust fund financed by proceeds from port fees. Starting Oct. 14, Washington is slated to begin collecting fees from vessels linked to China that call at U.S. ports. While the final rules from the U.S. Trade Representative are still pending, analysts at HSBC estimate that China’s state-owned Cosco Shipping could face as much as $1.5 billion in liabilities in the first year alone. The revenues would be channeled back into U.S. shipyards, ports and work force development.
For Korean companies, however, the most transformative element lies in the proposed recognition of foreign-built ships as U.S. vessels. Passage of the bill would mean that Korean shipbuilders could construct ships on their own turf in Korea, rather than having to operate within U.S. yards to meet Jones Act restrictions. The Jones Act currently bars foreign-built vessels from being used in domestic trade, effectively shutting out Korean yards from this market for both commercial and security reasons.
Hanwha Ocean acquired Philly Shipyard last year for $100 billion, later renaming it Hanwha Philly Shipyard. The firm has pledged $5 billion in fresh investment as part of a broader $150 billion commitment from Korean industry to the U.S. shipbuilding sector. Hanwha is also pursuing an increased stake in Austal, an Australian defense contractor that operates yards in Alabama and California, to expand its U.S. presence.
Other Korean shipyards have taken a more cautious approach, wary of the costs and complexities of acquiring and modernizing U.S. yards, which would require extensive infrastructure upgrades and large-scale work force training to expand production capacity.
“Rebuilding the U.S. shipbuilding sector will require collaboration with allied shipyards under the SHIPS Act,” an official from a Korean shipyard said. “For Korean firms as well, gaining access to a new market would be mutually beneficial.”
Despite strong bipartisan backing under the leadership of Senators Mark Kelly of Arizona and Todd Young of Indiana, the bill has stalled in Congress. It has remained at the introductory stage since its proposal in April.
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
'">
.png?type=nf190_130)
.jpg?type=nf190_130)
