Year-end is usually a slow news time. Not in 2025! The end of December and early January have been active, highlighted by the United States arresting Venezuelan President Nicolás Maduro and his wife. The Special Forces and FBI raid was an exercise in precision. It showed, however, that U.S. Navy forces are spread thin globally, thereby challenging their mission to protect our allies and guarantee freedom of the seas.
While we were focused on Venezuela, widespread protests erupted in Iran and the Iranian military’s crackdown has killed many demonstrators. President Trump warned Iran’s leaders against the killing, but we have no major naval assets in the Middle East, having moved them to Venezuela. U.S. aircraft carrier groups in the Pacific-Asia region will take time to reposition. Any U.S. action against Iran’s leadership will rely on our Middle East allies, with our intelligence and long-distance support.
Another emerging hot spot is the Arctic and Greenland. The area’s strategic location along the emerging Asia-to-Europe trade route for Chinese and Russian ships makes it a critical defensive asset. Those nations are also sending naval vessels on reconnaissance missions, highlighting our inability to confront them due to a lack of icebreakers. The U.S. announced at year-end the award of two contracts to build Coast Guard icebreakers. The plan is to build the ships in Finland and the U.S. quickly, with the former’s knowledge and technical expertise transferred to a Gulf Coast shipyard.
The Trump administration recently proposed a 50% increase in defense spending for the next fiscal year, to begin rebuilding our military capabilities and weapons supply. A new plan for the Navy has emerged that focuses less on growing the number of ships and more on creating a fleet with greater flexibility to wage a broader range of warfare. Redesigning the way the Navy purchases new warships is also underway to speed up delivery times and reduce costs.
The most recent maritime development is Venezuela’s agreement to provide 30-50 million barrels of oil to the U.S. The sale of the oil will accrue to the benefit of Venezuela’s citizens. However, the lack of available U.S.-flag tankers means foreign, non-sanctioned tankers will transport the oil. More oil is reportedly to follow this first tranche. The U.S. could offer this new cargo to foreign ships to entice them to reflag in the U.S., helping to grow our fleet.
After a slow start in 2025 to the effort to revitalize our maritime industry, the pace accelerated at year’s end. Can it continue? Yes. It must continue, given the significant challenges that revitalizing our shipping and shipbuilding industry must overcome, and the importance of our national defense and economic strength.
