As I alluded to in part one of our series, the Merchant Marine Act, more commonly known as the “Jones Act”, appeared to be a bust for America until the 1930s, when President Roosevelt saw an opportunity to revitalize both the Act and the American economy simultaneously.  

In 1936, Congress passed a new Merchant Marine Act, which aimed to establish a modern, efficient, and strategically vital fleet of American merchant ships. The Act created a new government agency, The Maritime Commission, which administered the Act’s provisions, including providing subsidies for ship construction and operation. 

Although the Merchant Marine Act of 1936 acknowledged its predecessor established in 1920, the new Act introduced significant government intervention and comprehensive programs for building a modern fleet for national defense and commerce. For example, the Construction Differential Subsidy (CDS) program aimed to support the US shipbuilding industry by covering the difference in construction costs between the US and foreign shipyards.  

The timing of the Merchant Marine Act was critical to our national defense, as tensions in Europe and Asia stoked fears of another world war. The U.S. sought to avoid a shipping crisis like that of World War I, and thus created a fleet of modern, safe, and fast cargo ships. In 1938, the program committed to building 500 new vessels within 10 years. By 1941, the program’s annual output called for 400 ships. Between 1939 and 1945, the Maritime Commission constructed 5,171 ships, all of which exceeded 2,000 gross registered tons. ¹ The U.S. maritime industry had finally hit its stride, thanks to the revitalization of the Merchant Marine Act. 

According to the U.S. Department of Transportation, Maritime Administration, the success of the U.S. merchant marine in World War II would not have been possible without the historic efforts in shipbuilding, ship management, and mariner training. When World War II began in September 1939, ships directly supported the war effort by providing transportation for troops, equipment, and supplies. The Merchant Marine Act addressed the need for trained crew and a functioning ship repair infrastructure, making the U.S. merchant fleet a cornerstone of national defense.

Although the U.S. government supported maritime training through the Merchant Marine Act, it wasn’t until 1943 that the U.S. Merchant Marine Academy (USMMA) was established. USMMA is a federal service academy that educates future leaders to serve as licensed Merchant Marine Officers and commissioned officers in the U.S. Armed Forces, or in the nation’s maritime or economic needs. The academy offers specialized training in marine engineering, navigation, and maritime operations, preparing graduates for careers in both sea and shore roles within the transportation industry and national defense. Its primary goal is to ensure a steady supply of skilled mariners to secure commerce during peacetime and to transport military assets and supplies during conflict.

By the end of World War II, America’s shipbuilding and maritime industry was booming, with vital infrastructure and support roles filled. From bust to boom, the Merchant Marine Act restored the maritime industry and American manufacturing.

Part 3 of the series will examine the subsequent bust of the maritime industry.