Norwegian Cruise Line CEO Harry Sommer says building ships in America is possible but would require decades of development, as President Trump’s maritime initiatives aim to revitalize the nation’s shipbuilding industry.
At a Glance
- President Trump’s executive order on maritime aims to restore and strengthen America’s shipbuilding industry
- The U.S. currently builds only 0.2% of the world’s ships, compared to China’s 74%
- Norwegian Cruise Line CEO believes developing U.S. shipbuilding capacity would take years or decades
- Italian and other European shipbuilders have developed comprehensive infrastructure with government support
- Maritime initiatives include tax credits, grants, and strategic investments to rebuild shipbuilding capacity
America’s Maritime Ambitions
President Trump has taken bold steps to revitalize America’s maritime industry with a comprehensive executive order that has garnered widespread support from industry leaders. The initiative aims to address the significant decline in U.S. shipbuilding capacity, which currently produces just 0.2% of the world’s ships. The order establishes a Maritime Action Plan, a Maritime Security Trust Fund, and strategic commercial fleet programs to rebuild the nation’s maritime capabilities and create high-paying manufacturing jobs for American workers.
The maritime order is part of a broader effort to reinvigorate American manufacturing through tariff policies. These policies have sent ripples through various industries, including cruise lines, which saw significant stock drops following the announcement. Despite these short-term market reactions, the administration remains committed to its long-term vision of American industrial resurgence, particularly in sectors where foreign competition has dominated for decades.
Norwegian Cruise Line’s Perspective
At the recent Seatrade Cruise Global conference in Miami, Norwegian Cruise Line CEO Harry Sommer offered a pragmatic assessment of America’s potential to enter the cruise shipbuilding arena. While expressing support for the concept, Sommer emphasized the significant challenges ahead. Currently, Norwegian and other major cruise lines rely heavily on European shipbuilders in countries like Italy, Germany, France, and Finland, which have developed sophisticated maritime construction ecosystems over many decades.
“You know, really, it’s an entire ecosystem. Italy, and also Germany, France, Finland — there are four countries in Europe that build ships; all four of them have developed this comprehensive infrastructure. So yes, financing is definitely a piece of it. The Italian government supports the construction of ships for export, if you will, for use in international waters.”, explained the company’s CEO, Harry Sommer.
Sommer highlighted the attractive financing terms offered by European governments, which include favorable interest rates fixed over long periods. This financial support allows cruise lines to maintain good returns for shareholders while investing in new vessels. For the U.S. to compete effectively, similar financial mechanisms would need to be established, along with developing the specialized workforce and technical expertise required for constructing modern cruise ships.
Industry Support for Maritime Initiatives
Maritime industry organizations have expressed strong support for the president’s executive order. The initiatives address several critical areas, including the development of a larger U.S.-flagged commercial fleet, expansion of mariner training and education programs, and strategic investments to counter China’s growing dominance in shipbuilding. The order also directs the Secretary of Defense to assess options for expanding the Maritime Industrial Base and instructs the U.S. Trade Representative to make recommendations regarding China’s anticompetitive practices.
“The Shipbuilders Council of America supports President Trump’s action to restore and strengthen America’s shipbuilding and ship repair industry. The establishment of a Maritime Action Plan that includes a Maritime Security Trust Fund, strategic commercial fleet program, along with new tax credits, grants, and strategic investments, will provide a powerful environment to rebuild our shipbuilding capacity and build the fleet of the future.”, said Matthew Paxton, president of the Shipbuilders Council.
President Trump has publicly committed to resurrecting the American shipbuilding industry, emphasizing its importance during a joint address to Congress. The initiative is part of the America First Agenda, which prioritizes revitalizing domestic manufacturing and reducing dependency on foreign production. For the cruise industry specifically, this could eventually mean American-built vessels, though the timeline for achieving this capability remains uncertain.
Long-Term Outlook
While expressing optimism about America’s potential to enter the cruise shipbuilding market, Sommer was careful to set realistic expectations about the timeline. Creating a competitive shipbuilding industry in the United States would require significant investment in infrastructure, workforce development, and financial support mechanisms. The CEO stressed that this would not be a quick transition but rather a strategic, multi-year or even multi-decade endeavor.
Despite these challenges, the renewed focus on American maritime capabilities represents a significant shift in policy. If successful, the initiatives could create thousands of high-skilled jobs and establish a new era of American shipbuilding prowess. For companies like Norwegian Cruise Line, this could eventually provide an alternative to their current European suppliers, potentially reshaping the global cruise industry supply chain while strengthening America’s maritime position on the world stage.
