Commerical shipping into Bab al-Mandeb Strait experienced a sharp decrease on January 12 following US and UK airstrikes targeting Houthi targets in Yemen. Following Bimco's call for a 72-hour transit halt and Torm's threat of retaliation against southern Red Sea voyages, over 290 vessels remain present as markets prepare for more escalation.
Over the past week, U.S. shipbuilding has been marked by new federal workforce funding, private yard expansion plans and high level Navy engagement with industry. The Labor Department unveiled a multimillion-dollar shipbuilding workforce plan, Master Boat Builders unveiled their defense focused facility and Navy leaders toured Bollinger Shipyards to review projects and capacity - these developments represent a coordinated effort to accelerate fleet growth.
On 8 and 10 January 2026, the shadow fleet carrying Russian and Venezuelan oil came under increased military and regulatory scrutiny. A Palau flagged tanker linked to Russia was hit by an unmanned surface vessel off Turkiye; U.S. forces also seized two suspected sanctions evasion tankers as separate operations; regional governments as well as NATO partners are currently reviewing risks related to this opaque trade.
The inaugural week of 2026 witnessed significant naval and defense activity, from advances to European surface combatant programs to autonomous vessel initiatives across North America and Asia, subsea infrastructure protection moves in the Philippines and even a significant U.S. defense budget signal. This report covers some of the most noteworthy and verifiable developments between 1 January and 8 January 2026.
Reports surfaced over January 4-6, 2026 highlighting shadow fleet tankers reflagging to Russia near Venezuela to avoid US seizures, as well as four vessels connected with oil evasion from Venezuelan. This trend illustrated Russia's increasing role in protecting illicit tankers from interception or drone threats while testing international enforcement limits.
Over a dozen Western-sanctioned tankers have recently switched their flag to Russia's, seeking protection against U.S. interception and Ukrainian drone attacks. This marks a dramatic transformation of shadow fleet operations: vessels are moving away from open registries towards direct state protection.
Trump administration intensified enforcement against Venezuelan oil exports in late December 2025, when US Coast Guard officers seized two tankers and pursued another vessel associated with shadow fleet vessels linked to Venezuela. Operations also targeted sanctioned oil shipments connected to its government.
US Navy officials welcomed the 78th Arleigh Burke-class destroyer USS Ted Stevens from HII Ingalls Shipbuilding into their fleet capabilities, increasing fleet capabilities. At the same time, Japan approved its record $58 billion defense budget on December 26, which will fund JMSDF vessel constructions, Aegis upgrades, and unmanned systems for coastal defense to combat regional tensions.
Over the last month, Damen Shipyards Group celebrated the keel-laying of Herman Seniors MPV 4916 Smokey at Albwardy Damen in Dubai as well as having its LST100 design selected by US Navy for its Landing Ship Medium program. Meanwhile, Dutch authorities arrested two individuals at Damen premises for possible Russia sanctions violations; with which Damen is fully cooperating.
Hanwha Ocean of South Korea secured a $1.8 billion offshore wind engineering contract for the 390-MW Shinan Ui project in December 2025 while also positioning itself to take part in expanded U.S. Navy warship construction under President Trump's Golden Fleet initiative.
Since December 10, 2024, both the Red Sea and Gulf of Aden have seen over one month without confirmed Houthi attacks on merchant vessels since December 10th; analysts credit reduced targets, US and UK airstrikes, and Houthi focus on land targets amid potential Gaza ceasefire ceasefire for this peaceful trend; although risks still exist.
On December 22, 2025, President Donald Trump unveiled the Trump-class battleships as the centerpiece of his Golden Fleet initiative to expand naval power with initial construction of two vessels that is projected to increase to 20-25 over time. This initiative puts pressure on defense contractors over delays while increasing shipyard activity nationwide amid worries over China's shipbuilding pace. Navy Secretary John Phelan provided details regarding advanced weapons including nuclear-armed missiles.
HII advances distributed shipbuilding by opening new facilities and partners to meet US Navy demands, while investing $448 million in AI-driven Ship OS for efficiency gains. Hanwha Philly Shipyard readies for next-generation frigates following President Trumps endorsement; global newbuilds showcase green tech as well as market shifts for chemical tankers, car carriers and ferries which signals a return of US maritime industrial capacity.
On December 19th, the US Navy revealed plans for a new FF(X) frigate class based on the Legend-class cutter design to bolster its small surface combatant fleet by 2028. Meanwhile, Indonesia launched their largest surface combatant (KRI Balaputradewa) on 18 December, marking a key step in Southeast Asian naval capabilities and underscoring global naval modernization efforts. These developments highlight global efforts in this regard.
Coda Octopus Group, Inc. announced its latest revenues for fiscal third quarter 2025, 29% higher year on year propelling increased revenues powered by the marine technology and defence sector. Highlights for this quarter include: delivery of 16DAVD untethered systems to the U.S. Navy and multiple orders from major European navies; completion of DUS Hardening Program; start of production of Echoscope PIPE NANO GEN Series sonars which is taking Coda into underwater robotics applications including the application to special forces.
Last week saw everything from high end carrier deployments in the Caribbean to ballistic missile tests in Asia: US operations near Venezuela, Indian nuclear submarine progress, Pakistani anti ship ballistic tests and Iranian frigate recommissioning all flagged the rapidly changing maritime security environment that shipbuilders, weapons suppliers and regional force posture have to positively operate in.
In the past month, autonomous surface vessel markets have seen record transatlantic crossings, an important U.S. Navy contract award, and large private investments into new production capacity - demonstrating how uncrewed surface platforms are warding off the experimental seas, into operational and commercial use too.
HD Hyundai also won its biggest container ship order since 2007, taking on a US$1.46 billion contract from HMM for eight ultra-large 13,400 TEU LNG dual fuel vessels. At the same time it extended US collaboration with an MOU with Huntington Ingalls Industries and Siemens partnerships to improve American shipbuilding capabilities.
Fincantieri responded deftly to a major shift in direction in November 2025 reconfiguring its Constellation-class frigate program with the United States Navy, winning a EUR40 million expansion for its Ancona shipyard and supplying an all-purpose support vessel to Italy's Navy. Fincantieri reinforced its position, across the defense and commercial sectors alike, in the process.
On November 15th 2025 in Panama City Florida, the US Navy commemorated the commissioning of USS Pierre (LCS 38) - the last of the Independence-class littoral combat ships: marking the end of a class perhaps best exemplified by unexpected hiccups or hiccoughs (we still don’t know the correct spelling!) that delayed some ships and contributed to an overall rocky start to a class that eventually served with distinction. As the rest of the Navy prepared to commission Ship #1 in this new class, tensions in the maritime regions simmered as Chinese naval modernization, Russian exercises in Southeast Asia, and Venezuelan mobilization in response to US Carriers in the Caribbean showed how emboldened global powers were willing to be.