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Dispatch No. 61

Hello Club Members! Here is your weekly Dispatch with all the maritime news you need to know to end your week.

Ship Photo of The Week

Tankers are lining up at Lake Maracaibo to load crude cargoes and depart from Venezuela before a May 27 deadline set by the U.S. to wind down operations and exports, according to documents and data, in Maracaibo, Venezuela April 28, 2025. REUTERS/Stringer

Congress Reboots America’s Maritime Comeback

Washington is hoisting the sails on a full-throttle maritime revival. A bipartisan crew of lawmakers has reintroduced the SHIPS for America Act, a sweeping legislative push to rebuild the U.S. commercial fleet and shipbuilding base in the face of China’s maritime dominance.

Spearheaded by Senators Mark Kelly and Todd Young, along with Representatives John Garamendi and Trent Kelly, the bill sets a bold course: grow the U.S.-flag international fleet by 250 ships within ten years. Currently, the U.S. has just 80 such vessels in commercial service. China? A staggering 5,500.

Sen. Kelly speaks at a Capitol Hill press conference on the SHIPS for America Act, April 30, 2025. Photo courtesy Senator Kelly’s Office

The SHIPS Act charts a multifaceted strategy—establishing a White House Maritime Security Advisor, creating a Maritime Security Trust Fund, offering tax credits for shipyard investment, and streamlining Coast Guard red tape. It also calls for government and China-origin cargo to sail aboard U.S.-flagged ships starting in 2030.

The bill arrives alongside Trump’s April 9 executive order “Restoring America’s Maritime Dominance”, forming a one-two punch of administrative and legislative action not seen since the Reagan era. Together, they aim to revive shipyards, boost the merchant fleet, and ensure the U.S. remains a seapower in an increasingly contested global shipping landscape.

Even as White House National Security Adviser Mike Waltz exits amid controversy, his maritime legacy lives on—he helped shape both initiatives and called the SHIPS Act “a game changer.”

With over 75 industry endorsements, the message is clear: America’s maritime comeback is officially underway.

West Coast Warns of Tariff Turbulence as U.S. Economy Contracts

West Coast senators and port leaders are sounding the alarm: Trump’s 145% “Liberation Day” tariffs on Chinese imports—and China’s 125% retaliation—are slamming the economy. The Ports of Los Angeles and Long Beach expect imports to plunge by over a third within weeks, with ripple effects set to disrupt trucking, retail, and jobs nationwide.

“The drop in cargo will mean empty shelves, rising prices, and more Americans out of work,” warned Senator Alex Padilla, as port executives echoed fears of a “cargo slowdown” replacing last year’s surge.

The economic damage is already surfacing. U.S. GDP shrank 0.3% in Q1—its first contraction since 2022—due largely to a record-breaking trade imbalance as companies rushed to import goods ahead of the tariffs. Retailers and manufacturers are bracing for slower sales, and economists now say the odds of a recession are a coin flip.

ILWU and trade experts argue the tariffs are more harmful than helpful. “Congress needs to take the matches away from the President who is setting fire to the economy,” said Senator Patty Murray. The message from the West Coast: walk back the tariffs, or brace for impact.

Houthis Detaining Ships at Ras Isa

Commercial vessels anchored at Yemen’s Ras Isa port are being forcibly detained by Houthi forces—even with valid UN clearance—according to a May 1 alert from UKMTO. Crews report warning shots and armed boardings, as local authorities demand ships shift to berths under threat.

Security analysts say the Houthis are using commercial vessels as leverage against U.S., UK, and Israeli airstrikes, with fast attack craft patrolling the area. The threat now extends to all Houthi-held ports, including Hodeidah and Saleef.

This comes just weeks after a deadly U.S. strike on Ras Isa killed 80 people, part of a wider campaign that has hit over 800 targets in Yemen since mid-March in response to Red Sea shipping attacks. Risk to seafarers remains high. We’ll be watching this closely as the situation develops.

$60M Jet Lost in Red Sea Mishap

The USS Harry S. Truman lost an F/A-18E Super Hornet and tow tractor overboard during a hangar bay operation in the Red Sea on April 28, drawing new attention to the operational costs of the U.S. campaign against the Houthis. Naval officials say the crew narrowly avoided injury, though one sailor sustained minor wounds.

The accident, now under investigation, comes during the carrier’s extended deployment in support of President Trump’s Operation Rough Rider, which has hit over 800 Houthi targets since March. Despite the incident—and a prior collision in February—the carrier strike group remains mission capable.

Meanwhile, CENTCOM says the campaign has reduced Houthi missile and drone attacks by over 50%, though civilian casualties and the risks of escalation persist. Defense Secretary Pete Hegseth issued a blunt warning to Iran this week: “You will pay the CONSEQUENCE at the time and place of our choosing.”

As the Red Sea shipping crisis grinds on, the Truman’s mishap is a costly reminder of the challenges involved in restoring freedom of navigation—both in dollars and in danger.

Greeks Return to Russian Oil as Price Dips Below Cap

Greek shipowners are quietly reentering Russia’s Urals oil trade as prices fall below the G7’s $60-per-barrel cap, once again making Western involvement in transport and insurance legal under sanctions.

After largely steering clear of Russian crude since 2022, major Greek firms—including Minerva Marine, Dynacom, and TMS Tankers—supplied vessels for Urals shipments in April, according to trading and shipping sources. With free-on-board prices hovering around $50 per barrel, the legal window has reopened for compliant transport.

Reuters data shows 15 of 25 tankers loaded from key Russian ports last month were managed by Greek companies. While the shippers declined comment, the trend signals a shift as global oil prices soften and Western firms edge back into the sanctioned market—at least for now.

Denmark Sets Sail on $1B War Insurance Plan

Denmark is prepping its merchant fleet for troubled waters, proposing nearly $1 billion in state-backed war insurance in case commercial coverage dries up during a major crisis. The plan would revive the country’s War Insurance Institute and grant it access to a 6 billion-krone loan facility to cover claims if geopolitical instability disrupts markets.

Citing “global tensions and war on European soil,” Business Minister Morten Bodskov called the move a necessary precaution. With a fleet valued at $20 billion and home to shipping giant Maersk, Denmark is making sure its maritime assets won’t be left uninsured if the world takes a turn for the worse.

Russia Reflags LNG Tankers as Arctic Sanctions Workaround Looms

Four ice-class LNG carriers have been reflagged to Russia and renamed as part of a growing shadow fleet supporting the sanctioned Arctic LNG 2 project. Formerly the North Sky, North Air, North Mountain, and North Way, the ships now sail under Russian flags as Iris, Buran, Voskhod, and Zarya.

The reflagging may enable Russia to skirt sanctions by loosening AIS tracking enforcement and offering state-backed insurance, analysts say. All four Arc4-class vessels—built in South Korea and sanctioned by the U.S. last year—could soon attempt summer shipments from the ice-bound terminal.

Production at Arctic LNG 2 has picked up, but without new buyers or clearer paths around sanctions, exports remain uncertain. Still, June’s ice breakup could mark the start of Russia’s next push to get Arctic LNG to market—quietly.

U.S. Icebreaker Inches Forward

The U.S. Coast Guard’s long-delayed heavy icebreaker is finally heading into full production—sort of. On April 30, DHS approved full construction of the first Polar Security Cutter, the first such vessel built in the U.S. in nearly 50 years.

The milestone comes more than five years after the contract was signed, nearly a year after its original delivery date, and with costs ballooning from $746 million to $1.9 billion. Shipbuilder Bollinger says work is now truly underway after years spent fabricating prototype modules and relearning how to weld Arctic-grade steel.

The Coast Guard’s original goal was early 2024 delivery; now, it’s targeting 2030. If it hits that mark, it’ll be a rare bright spot in a program plagued by delays, leadership turnover, and unanswered press inquiries.

As always, we’d love to hear your feedback. Email [email protected] with any questions, comments, tips, or concerns. Don’t forget to check out the Club Discord and gCaptain.com for the latest maritime news.

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Dispatch 61 – SHIPS Ahoy

gCaptain Club

Dispatch No. 61

Ship Photo of The Week

Congress Reboots America’s Maritime Comeback