Recent developments in shipbuilding reflect an imperative to strengthen US naval capacity while adopting cutting-edge technologies and supporting global trends towards eco-friendly vessel designs.
HII Increases Throughput With Distributed Shipbuilding Model
HII has partnered with shipyards and fabricators across multiple US states to increase production throughput and address surging US Navy demand. This initiative expands the industrial base, creates jobs, and improves schedule adherence for submarines, aircraft carriers, and destroyers.
In Newport News, Virginia, HII recently acquired a facility in Goose Creek, South Carolina, now Charleston Operations, dedicated to producing submarine modules and carrier units with expansion potential. CEO Chris Kastner noted that outsourced hours have doubled in 2025 and are set to quadruple over two years, supported by rising hiring and declining attrition.
Key partners in Virginia and other states are fabricating structural assemblies for DDGs 135, 137 and 139 destroyers while initial destroyer work involves six shipbuilders from across states, as more packages for these vessels come under consideration.
US Navy Allocates $448 Million to AI-Driven Ship OS
The US Navy is investing $448 million in an AI-powered Ship Operating System to accelerate shipbuilding efficiency, managed by the Maritime Industrial Base initiative with Naval Sea Systems Command. The system integrates data from resource planning, legacy databases, and operations to pinpoint bottlenecks, optimize workflows, and mitigate risks.
Pilot results are promising: General Dynamics Electric Boat reduced submarine schedule planning from 160 manual hours to under 10 minutes, and Portsmouth Naval Shipyard cut material reviews from weeks to one hour. Initial focus is on the Submarine Industrial Base, with potential surface ship expansion, aiming for cost savings and industrial resilience.
Hanwha Philly Shipyard Positions Available for US Navy Frigates
Hanwha Philly Shipyard, acquired by South Koreas Hanwha Group in 2024, is gearing up for next-generation US Navy frigates following President Donald Trumps announcement of collaboration. Preparations include workforce growth, productivity enhancements, facility upgrades, and technology transfer.
Hanwha's participation marks an exciting step forward for the MASGA project and strengthens domestic frigate capabilities.
Global Newbuild Orders Applaud Green Propulsion Technologies
Union Maritime ordered two 18,500 DWT chemical tankers from Chinas Wuhu Shipyard, fitted with Anemoi Rotor Sails for wind-assisted propulsion, installable in early 2026. These vessels prioritize lifecycle decarbonization.
Nippon Yusen Kabushiki Kaisha (NYK) recently placed an order with Shinkai Toyohashi Shipbuilding for a 199.95m car carrier due for delivery by March 2026, featuring autonomous navigation and motion mitigation for optimal safety and efficiency.
DNV granted Approval in Principle to MSC, Zhoushan Changhong International, and CIMC ORIC for a 21,700 TEU ammonia-dual-fuel container ship with advanced engines and tanks. ABB secured hybrid-electric propulsion for Washington State Ferries two 160-auto ferries from Eastern Shipbuilding Group, deliveries in 2030-2031.
Market Trends: Bulker Orders Decline; Offshore Innovation.
Bulker newbuilding contracts dropped 54% year-on-year to 25 million DWT through November 2025, the lowest since 2020, shrinking the orderbook to 11% of the fleet. BIMCO attributes this to uncertain outlooks.
Windcat under CMB.TECH recently contracted Damen Shipyards for construction of an MP-ASV vessel to begin February 2026 in Vietnam with delivery scheduled for 2028; options exist to construct five more.
These events reflect a dynamic shipbuilding scene, with US efforts concentrating on capacity expansion and tech integration in response to declining global dry bulk demand.