Anchors Aweigh—or Anchors Astray? America’s Maritime Crisis

China builds ships. The U.S. builds excuses.

Sometime within the past year I read an article about how China was actively building or upgrading ports on the Western coast of Africa. More recently I caught a story showing the significant superiority of China's shipbuilding over our American efforts. 

Both these stories came to mind as I read yesterday's story in The Bunker, an eNewsletter I receive from the Project On Government Oversight (POGO). Yesterday's article was titled Anchor's Astray, addressing the phenomenal waste that goes on at the Pentagon. The story outlined a scuttled project to build build up to 20 small warships after the first two came in at two billion dollars, far above budget. 

This led me to investigate how many ships China is building compared the U.S. Here's some eye-openng data peraining to military ad commercial ship production. Commercial ships include domestic/merchant vessels, such as cargo ships, tankers, and container ships.

 Ship Production Comparison: United States vs. China

WARSHIPS

U.S. Fleet Size (2024): 296 battle-force ships (e.g., destroyers, submarines, carriers).

--- Annual Production (2024): ~1.13 Virginia-class submarines (goal: 2.0); 6 new ships requested for FY2025 (below 10-11 needed annually for 381-ship goal by 2042). 

--- Recent Trends: 82% of programs delayed (e.g., Constellation frigate: 3+ years behind; Columbia submarine: 1+ year delay). Net fleet decline projected: -9 ships in FY2025. 

--- Capacity: Limited to a few yards; overall output lags due to backlogs and costs ($40B/year planned but underfunded).

CHINA Fleet Size (2024): 370+ battle-force ships (largest globally). 

--- Annual Production (2024): 11+ major combatants launched (~130,000 tons); 23 destroyers added in past 10 years (vs. U.S. 11). 

--- Recent Trends: 8 cruisers since 2017 (vs. U.S. 0); submarine force to grow to 80 by 2035. Projections: 395 ships by 2025, 435 by 2030. 

--- Capacity: 230x U.S. total shipbuilding capacity; dual-use yards enable rapid scaling.

DOMESTIC/COMMERCIAL SHIPS

U.S. Global Market Share (2024): 0.1% (ranks 19th-22nd globally). 

--- Annual Output (2024): 3 large vessels ordered (out of 5,448 global); ~8 delivered. --- Recent Trends: Tonnage output <0.04% globally; total U.S. post-WWII commercial tonnage exceeded by one Chinese firm in 2024 alone. Focus shifting to revitalization via incentives (e.g., SHIPS for America Act targeting 250 U.S.-flagged vessels). 

--- Capacity: ~80 oceangoing yards, but minimal for large vessels; vulnerable to foreign supply chains.

CHINA Global Market Share (2024): 53% (leads world; 57% of completions by deadweight tons). 

--- Annual Output (2024): >1,000 vessels; 48.18 million dwt completed (up 13.8% YoY); 113 million dwt ordered (up 58.8% YoY). 

--- Recent Trends: 75% of global new orders in H2 2024; dominates bulk carriers, tankers, containers. Backlog: 208.72 million dwt (up 49.7% YoY). Slight dip in early 2025 orders (to ~52%) due to U.S. trade policies, but rebounding. 

--- Capacity: ~150 yards; state-owned CSSC alone outproduces entire U.S. historical commercial output.

Accordiing to The Atlantic, the U.S. shipbuilding industry, once a global powerhouse capable of producing over 5,500 vessels during World War II, has deteriorated into a shadow of its former self, capturing just 0.13% of the global commercial market in 2024 and facing chronic delays in naval production.  This handicap stems from a century-long interplay of policy neglect, economic shifts, and structural vulnerabilities, leaving the industry unable to compete with subsidized powerhouses like China (59% market share) or keep pace with national security needs.  

According to Contrary Research, China is now the leading powerhouse of the high seas. As of late 2025, the U.S. Navy's fleet hovers around 290 ships—projected to decline despite ambitions for 381—while shipyards grapple with backlogs that could take years to clear.  

The roots trace back to the post-Civil War era, when the U.S. opted against sustained public investment in maritime infrastructure, unlike European rivals who subsidized their fleets aggressively. This laissez-faire approach accelerated after World War I, as wartime booms faded and commercial demand for U.S.-built ships waned amid rising trucking competition for inland and coastal routes.  

By the 1980s, post-Cold War "peace dividend" cuts slashed budgets and fleet sizes, shrinking the number of capable shipyards by 80% and output by 90% from 1950s peaks.  Today, this historical atrophy manifests in a fragmented industrial base, where public yards suffer from obsolescence and private ones from overreliance on sporadic naval contracts. 

A core handicap is the acute workforce shortage, exacerbated by demographics and cultural shifts. Shipyards are hemorrhaging experienced workers through retirement—a "generation gap" leaving teams less productive and reliant on inexperienced hires who require heavy supervision—while struggling to recruit replacements.  Turnover exceeds 20% among younger employees, driven by low starting wages (despite competitive averages of $62,000–$83,000), demanding physical conditions, and a societal push toward college over trades.  

Entry-level jobs often demand 1+ years of experience, creating a catch-22 that stifles growth, and limited vocational training pipelines mean shipbuilding competes poorly with less hazardous fields.  This crisis compounds design and production flaws: U.S. vessels are notoriously complex, with "concurrency" (building before designs are finalized) leading to rework, delays (e.g., Constellation-class frigates years behind), and costs ballooning 30–50% over estimates.  Foreign subsidies enable rivals to iterate faster and cheaper, while U.S. monopsonistic procurement caps profits at 6–8%, deterring private investment in skills or tech. 

Supply chain fragility and infrastructural decay further immobilize the sector. Post-pandemic disruptions, inflation, and overreliance on foreign suppliers—even from China for critical components—have spiked costs for raw materials and parts, delaying projects by months. With fewer domestic suppliers than decades ago, bottlenecks ripple through yards, where outdated facilities (e.g., limited dry docks) and modular construction lags hinder scalability. High labor costs—coupled with stringent U.S. regulations like the Jones Act, which mandates domestic builds but stifles volume—make American ships 2–3 times pricier than Asian counterparts, eroding commercial viability. Meanwhile, global competitors like South Korea and Japan leverage dual-use yards for steady commercial-military output, investing in automation and modular techniques that U.S. facilities lack. 

Revival efforts, including the 2025 "Restoring America’s Maritime Dominance" executive order and $32.4 billion in FY2025 funding, aim to address these via workforce training, allied partnerships (e.g., with Japan), and supply chain fortification—but progress is glacial. Without bolder subsidies, immigration reforms for skilled trades, and a pivot to simpler designs, the U.S. risks ceding maritime supremacy, with dire implications for trade, deterrence, and surge capacity in conflicts. The industry's plight isn't inevitable; it's a policy choice, one that demands urgent, comprehensive reversal to rebuild what was lost.

Related Link

The Warship That Shows Why the U.S. Navy Is Falling Behind China

The Dire State of Our Shipbuilding Infastructure

The High Cost of Doing (Shipbuilding) Business

Sources: realcleardefense.com, americarenewing.com, The Atlantic, usni.org, freightnews.com

Another Day, Another Coup in Africa: A Brief History of Gabon

NPR this afternoon did a brief segment on the latest coup in Africa which occurred last night. The president is deposed, the military now in control. This is the 8th "democracy" overthrown in recent years on that continent. 

I'm not sure how various spinners will spin this, but it does seem to suggest a few things. As much as we exalt Democracy (with a capital D), an honest assessment here would suggest that it's only an ideal. In the real world, it doesn't always work. 

For those unfamiliar, here is a brief history of this African nation along the Atlantic coast of Central Africa, abutted by Equatorial Guinea and Cameroon to the North and Congo to the East.

The history of Gabon begins with the arrival of the Bantu people in the region around 3,000 years ago. These people were hunter-gatherers and farmers who lived in small villages. In the 15th century, the Portuguese arrived in Gabon and began trading with the local people. The Portuguese were followed by the Dutch, English, and French.

In the 19th century, Gabon became a French colony. The French ruled Gabon for over 100 years. During this time, they built roads, railways, and schools. They also introduced Christianity to the region.

In 1960, Gabon gained its independence from France. The first president of Gabon was Léon M'ba. He was autocratic and ruled the country with an iron fist. In 1967, he was overthrown in a coup d'état led by Omar Bongo. Bongo ruled Gabon for over 40 years until his death in 2009.

Since Bongo's death, Gabon has been ruled by his son, Ali Bongo Ondimba. Ali Bongo has been accused of corruption and human rights abuses.

Despite these challenges, Gabon has been a relatively stable country with a growing economy. It is a major producer of oil and timber. Gabon has also been a popular tourist destination, known for its beaches, rainforests, and wildlife.

* * * 

Here are some Tweets from X, the social media site formerly known as Twitter.

Jackson Hinkle After the coup in Gabon, revolutionaries uncovered suitcases & bags in the ousted President’s family home filled with bundles of banknotes, CFA francs, dollars and euros.‌‌.

Timothy Kalyegira When military coups took place in Guinea, Niger, Burkina Faso, Mali, Twitter traffic in Uganda was about 4,700 or 7,560.

The Zimbabwe and Sudan coups went up to 13,000 or 14,000 tweets. By nightfall, Ugandan tweets on Gabon could get to 400,000. WHY? The dynastic similarity.

Timothy Kalyegira Those of you who have built apartment blocks, petrol stations, acquired square miles of farmland (and even built that new shopping mall in Bukedea), all in the confident belief that the present order will continue indefinitely, this Gabon coup is a wake-up call.

Jackson Hinkle Brice Oligui Nguema is the leader of the coup in Gabon who ousted the French-installed leader.

Rep. Matt Gaetz

Rep. Matt Gaetz It happened again last night. Mauritania, Mali, Burkina Faso, Gambia, Chad, Guinea, Niger Now Gabon. Under @SecDef Lloyd Austin’s abysmal tenure we’ve gotten 7 coups in @USAfricaCommand alone. Each overthrow connected to people trained by US Taxpayer funds. Wanna know where we can cut spending? How about we spend less training people who overthrow elected governments?

* * * 

DISCLAIMER: These tweets have not been vetted for accuracy. They do raise questions and provide a glimpse of what has been taking place across the pond. How many of these coups do you recall hearing about in the news other than the recent Niger chapter, briefly?

Related Link
Democracy's Achilles Heel: Was Madison Right?
Human Rights in Gabon I Went to Gabon for Football and Found a Massacre

How Laws Encourage Or Restrict Economic Development

All over the world countries are reforming the ways they do things in order to encourage development. They have no interest in remaining stagnant economically. They have watched the West and seen what progress looks like and how stagnation occurs. A major area of reformation, as it turns out, has to do with government regulations. Do they incentivize growth or strangle it. Does the culture fertilize the spirit of entrepreneurship or kill it with toxic chemicals.

Historian Niall Ferguson discusses this in his book The Great Degeneration: How Institutions Decay and Economies Die.

Ferguson studied the volumes of data gathered by the World Bank to evaluate the nations in Africa that he might identify which countries in Africa ranked highest by the following measures:

1. The Quality of Public Administration
2. The Business Regulatory Environment
3. Property Rights and Rule Based Governments
4. Public Sector Management and Institutions
5. Transparency, Accountability and Corruption in the Public Sector

The top countries that rank highest in four or more of these categories were Burkina Faso, Ghana, Malawi and Rwanda.

According to Ferguson, another way of evaluating is to look at the IFC's "Doing Business" reports since 2006. Which countries have done the best at reducing the number of days it takes to complete the following six procedures:

1. Starting a Business
2. Getting a Construction Permit
3. Registering a Property
4. Paying Taxes
5. Importing Goods
6. Enforcing Contracts

The African winners, in order of achievement, were Nigeria, Gambia, Mauritius, Botswana and Burundi.

Paul Collier, a development economist, outlines several stages to making commerce happen. Foremost is the necessary step of reducing violence. Second, protect property rights. Third, impose institutional checks on government. Fourth, prevent corruption in the public sector.

When I look at this list, my first thought is how cities that don't deal with inner city violence are essentially undercutting their hope for a better economic future. As for property rights, to the degree that cities can utilize easy "eminent domain" to eliminate businesses, to that degree they are sending signals to other businesses to consider a flight to safety.

* * *

There was a time when the United States set the benchmark as regards the Rule of Law. Now, Ferguson states, it's the lawyers who rule. This is not the same thing. It's worth noting that lawyers are over-represented in our U.S. Congress. You might even say we have a nationwide epidemic of lawyers.

Cronyism and corruption are excessive as well. There is so much that is rotten in the legislature and regulatory agencies and the legal system itself, how can they be reformed?

Ferguson's answer to this is that real reform must come from outside the public institutions, from the associations of civil society. In short, from us, the citizens. 

* * * 

I remember reading a story years ago about an albacore fish business that was started in Los Angeles (or the vicinity). In order to just get the business off the ground they had to get approvals and paperwork from 49 government entities. Once they had gotten going, yet another agency read about what they were doing and because they did not have this agency's stamp of approval had to pay a $25,000 fine. 

WE GET WHAT WE INCENTIVIZE.
Here in Duluth we have a shortage of affordable housing. One potential fix here might be to do a thorough self-analysis of every facet of local government that has to do with housing. How many rules and regulations are interfering with the ability of the city to provide affordable housing? How necessary are they? Can they all be listed and prioritized?  Who has the authority to address each one (or each of the most restrictive items. 

We always think more money is what we need. What things can be changed without needing money? 

The book has generated a lot of ideas. Rather than blaming or finding fault, we can work together and discover solutions. Let's not give up hope.

At the Intersection of Time and Chance: Eight Minutes with Karen James Cody

Two weeks ago I had my first Air BnB experience. I'd planned a trip to visit my daughter and her husband inside the Washington D.C. Beltway, but needed a place to stay due to my lifelong cat allergy. Several options within walking distance invited me, but my instincts suggested this one in Takoma Park hosted by Karen James Cody.

Upon entering the home the artwork on the walls spoke to me, making me feel so very much at home. In the evening I likewise found Ms. Cody's story resonated with me as well, a networker in the arts community after a professional career in public relations. As she told me about the various projects she is involved with I wanted to share her world with readers here.

EN: What is The Allyson Group? How was it formed and what is its mission?

Gbenga Adibi, batik printmaker (Nigeria)

Karen James Cody: The Allyson Group is primarily me - Karen James Cody - offering writing, editing, and PR services to small-to-medium sized businesses, individual authors, and occasionally publications. Where additional skills are needed - for example, graphic design, photography, self-publishing consulting - I have a coterie of independent communicators who are available to jump in. I am also an artist's representative to a small group of visual artists. Here, I work to get them exhibitions, trunk shows, and to form relationships with museums and collectors.

EN: How was it formed? How has it evolved?

KJC: The company was first formed as The Allyson Company in the late 1980s in Oakland California, after I was laid off from my technical editing job with an environmental consulting company and did not have a Plan B. From that day to this, though I worked in corporate America for another 25 years, I have always had an independent practice.

Most of my professional life was spent in, first, graphic design and later, for many years, on the communications side of a large media company. As my skills and experience grew, I added to my own little company's offerings. In the beginning it was more like "word processing," putting together company brochures, annual reports, and the like: print "collateral." The personal computer added publishing capabilities to every writer's wheelhouse. We still needed designers, but not typesetters nor, necessarily, printers. (Sad, but true.)

EN: Your Kupendiza project is quite fascinating. I've read that you were the founder, but this didn't happen overnight. How did this project come together and get off the ground?

KJC: I do love beautiful handbags. It's not a fetish, but I love handbag design in the way some women love shoes. What got me into the business of handbags was the discovery that the beautiful beaded bags created by the Kenyan women I'm partnering with were funding an orphanage for HIV/AIDS-affected children in their community. It's why they founded their business.

I was enrolled by that because I have seen for myself that when women in small communities come together to take on some social challenge, miracles often happen.

My second partners were introduced to me by a friend, once he saw the purses from the original group. These women's project funds the manufacture of affordable feminine hygiene products for Kenyan girls, too many of whom can't afford the disposable kind, which forces them to miss school when they are menstruating. A totally solvable problem, and these women came together to solve it. Their work is also truly gorgeous. I added them to the roster, and suddenly I had a company. Kupendiza.

Since then we've added a group in Nigeria, and another in Tanzania. This year I expect to add the Amerindian community in Guyana, South America. And of course I'd love to identify women's projects right here in the good ol' U.S.A. that might be a fit for the Kupendiza brand: hand made by women.

EN: What are the special problems women in Africa deal with that you are attempting to address?

KJC: Besides the specific problems our partners are addressing with their businesses, women in many places are still second-class citizens (we think we're over that here in America, but the pay gap - among other things - demonstrates that's not true). The lack of gender parity is a challenge, and is manifest in business problems like lack of access to credit and financing - and in social problems like few choices about how to life one's life, the inability to live independently, even to claim title to land, lack of access to education in places where education has to be paid for out of pocket.

EN: The handbags are utterly beautiful. I found the craftsmanship stunning. Where are they being sold?

KJC: Now starting our second year, we are selling mostly at festivals, fairs, and aritsan markets along the Eastern seaboard, from Washington, D.C. to New York. We will branch out a little in 2017 - we've been accepted to the Neptune Festival in Virginia Beach in September, and Dance Africa at the Brooklyn Academy of Music in New York - big, prestigious festivals that I expect will give us more visibility. I'd love to make it to the eWomen Network conference in Dallas in August. We did well at the African Studies Association national convention in D.C. last December. So it's been mostly direct-to-consumer sales in our first year. We do have a shoppable website: Kupendiza.com, and are working to get known online, using social media: Facebook, Instagram.

www.Kupendiza.com 

www.Facebook.com/kupendiza

www.Instagram.com/kupendiza

EN: How did you personally come to connect with the needs of women in Kenya? Is there a backstory?

Gbenga Adibi

KJC: I met Pauline Muchina, co-founder of the African Women & Youth Initiative collective right here in the D.C. area. Professionally she is an HIV/AIDS policy worker and speaker. Her sister started AWYI. I was a customer first, and later decided to help them market the product. The business has branched out to add more partners.

Women working to solve our own problems is what inspires me. It's what I used to generally whip out my wallet and write a check to support. I saw starting Kupendiza as another way to support women's efforts to shape our own circumstances -- and our societies. The Kenyan beaders are highly talented. All they need are markets. The internet gives us the ability to easily and cheaply connect and collaborate.

EN: What is the Future African Leaders Project and why is this important?

KJC: The Future African Leaders Project is the orphanage in Nakuru, Kenya started by AWYI. They are housing, feeding, educating, and providing healthcare and other essential services to the kids. The first college graduates from this group were minted in 2015.

* * * *

Be sure to explore Kupendiza and its links. Thank you, Karen, for sharing.

Meantime, as your life goes on... make it count.

The China Factor

I remember in my youth when Communism was portrayed with two faces. The Russia face, which was aggressive and seeking world domination. And the China face, which was home grown and contained its interests within its own borders. This was, purportedly, how the world was and why Moscow was the big bad wolf during the Cold War.

Of course this view was simplistic. It is our nature to hope for simplistic solutions to everything. In point of fact, Chinese Communism was likewise vigorous, with tentacles in South America and Africa as well as Southeast Asia and even connections to the Middle East.

The June issue of Fast Company magazine has a detailed feature story by Richard Behar called "China Invades Africa." It’s an eye opening account of current events in the African subcontinent as multi-national corporations and Chinese opportunists battle for natural resources. According to Behar, “The sub-Sahara is now the scene of one of the most bare-knuckled resource grabs the world has ever seen.”

In the 1800’s European Colonialism divvied up Africa and exploited the peoples there, but rebellions and persistence with a pinch of conscience mixed in helped to peel back the blanket. Perhaps journalism contributed by revealing what was going on in the “dark continent” just as journalists helped reveal British brutality in the face of Ghandi’s non-violent uniting of disparate groups in India.

The situation in Africa today is this: the Continent has natural resources that the world needs. And preserving the environment, or helping the vanquished masses, is not on the agenda here.

What follows here is a brief intro to a longer backgrounder by the Heritage Foundation. It’s a good read, and gives a measure of insight into why there will continue to be problems in Africa in the 21st Century.

China's Influence in Africa: Implications for the United States
by Peter Brookes and Ji Hye Shin

Amid growing concerns about the People’s Repub­lic of China’s burgeoning influence around the globe, Beijing has now set its sights on Africa. China’s inter­est in Africa is not new. In the 1960s and 1970s, Beijing’s interest centered on building ideological sol­idarity with other underdeveloped nations to advance Chinese-style communism and on repelling Western “imperialism.” Following the Cold War, Chinese interests evolved into more pragmatic pursuits such as trade, investment, and energy.

In recent years, Beijing has identified the African continent as an area of significant economic and stra­tegic interest. America and its allies and friends are finding that their vision of a prosperous Africa gov­erned by democracies that respect human rights and the rule of law and that embrace free markets is being challenged by the escalating Chinese influence in Africa.

The People’s Republic of China (PRC) aids and abets oppressive and destitute African dictatorships by legit­imizing their misguided policies and praising their development models as suited to individual national conditions. Beijing holds out China’s unique develop­ment model—significant economic growth overseen by a disciplined, one-party totalitarian state with full authority, if not control, over all aspects of economic activity—as an example for others to emulate.

Moreover, China rewards its African friends with diplomatic attention and financial and military assis­tance, exacerbating existing forced dislocations of populations and abetting massive human rights abuses in troubled countries such as Sudan and Zimbabwe. As a consequence, Chinese support for political and economic repression in Africa counters the liberalizing influences of Africa’s tradi­tional European and American partners. China’s vigorous campaign to develop close ties with indi­vidual African nations also reflects Beijing’s global quest to isolate Taiwan diplomatically (seven of the 26 countries that have full diplomatic relations with Taiwan are African).

If interested in more, you can read it here

EdNote: I am not encouraging you to lose sleep over this, but as the future unfolds, you might find it helpful to have seen some of it coming.