U.S. Navy Secretary Pushes Maersk to Invest in American Shipbuilding During Denmark Visit

Secretary of the Navy Carlos Del Toro visited A.P. Moller-Maersk in Denmark last week to bolster support for American shipbuilding and address maritime security concerns.

During his meeting with A.P. Moller-Maersk CEO Vincent Clerc, Secretary Del Toro reaffirmed the U.S. Navy’s commitment to protecting commercial ships and mariners from Houthi attacks in the Red Sea.

As part of his Maritime Statecraft initiative, Del Toro encouraged investment in American shipbuilding. Discussions focused on attracting demand and investment for constructing commercial sealift vessels in U.S. shipyards. This visit supports efforts to strengthen American seapower, following the announcement of the maritime statecraft initiative at the Harvard Kennedy School last September, which aims to restore the U.S. as a comprehensive maritime power to counter China’s global shipbuilding dominance.

Since launching the maritime statecraft initiative, Secretary Del Toro has strongly advocated for bolstering American shipbuilding through partnerships with key allies. Following a recent visit to Korean shipbuilders, South Korean conglomerate Hanwha agreed to acquire U.S. shipbuilder Philly Shipyard in a deal valued at $100 million. This agreement will see the first Korean shipbuilder with operations in the U.S.

“With some of the world’s most technologically advanced shipbuilders already heeding our call to invest in integrated commercial and naval shipbuilding facilities in the United States, the next step in our maritime statecraft strategy is to attract the world’s foremost commercial shipping firms to signal their demand for new ships built in American shipyards,” Secretary Del Toro stated.

A.P. Moller-Maersk, through its Maersk Line, Limited, is the largest operator of U.S.-flag vessels in international trade and significantly participates in the U.S. Maritime Security Program and Voluntary Intermodal Sealift Agreement (VISA). However, the company does not operate under the Jones Act, which requires that cargo shipped between U.S. ports be transported on U.S.-owned, crewed, registered, and built ships.

In a recent address at the Naval War College on August 8, Del Toro emphasized the need to revitalize the U.S. seapower ecosystem to tackle naval challenges, stressing the importance of restoring competitiveness in U.S. commercial shipping to reduce naval shipbuilding costs.

Secretary Del Toro’s visit to Denmark also follows collaboration with interagency partners, including the U.S. Department of Energy and the U.S. Department of Transportation Maritime Administration, as well as Congress, to explore innovative incentives for building and flagging commercial ships domestically. Notably, the Department of Energy’s Title 17 Clean Energy Financing program now offers low-interest loans for U.S.-built dual-fuel commercial ships.

As a company policy, Maersk has committed to only building new ships that can be powered by green fuel.

The Maritime Security Program, overseen by the U.S. Maritime Administration, maintains a fleet of commercially viable, militarily useful U.S.-flagged merchant ships to support military sealift needs during conflicts or national emergencies.

Secretary Del Toro and his team plan to continue discussions with A.P. Moller-Maersk leadership during their upcoming visit to the United States.

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