US and Denmark Sign Memorandum to Modernize US Shipbuilding

The United States and Denmark signed a non-binding memorandum of understanding in Washington on October 22, 2026, to cooperate on modernizing US shipbuilding. The agreement was signed by US Under Secretary of State for Economic Affairs Jacob Helberg and Danish Foreign Minister Lars Løkke Rasmussen, with the stated goal of bringing skilled labor, capital and speed to the country's shipyard sector.

The memorandum establishes three areas of work: education and training; equipment, technology and maritime services; and defense and dual-use industrial cooperation. The goal is to incorporate Danish technology, investment and expertise into shipbuilding, repair and modernization projects in the United States, including through local partnerships and joint ventures. Potential supply areas mentioned include ship design, engines, energy-efficiency technology and equipment for specialized vessels, while dual-use cooperation could cover subsea infrastructure monitoring, maritime drones and systems to improve maritime domain awareness.

The agreement is part of the United States Maritime Action Plan, issued in February 2026 following an April 2025 executive order aimed at restoring the country's maritime capacity. According to cited figures, less than 1% of new merchant vessels are currently built in the United States, compared with about 55% in China, 28% in South Korea and 13% in Japan.

The memorandum is non-binding and does not by itself authorize procurement, contract awards or fund transfers; any commercial contract must be negotiated separately between companies and institutions on commercial terms. Implementation of the three areas will be coordinated by Denmark's Ministry of Foreign Affairs and the US Department of State, and the agreement does not apply to Greenland or the Faroe Islands.

Helberg announced the agreement on the social media platform X, where he noted that the US shipbuilding industry needs skilled labor, capital and speed, and stated that the memorandum with Denmark offers faster training, Danish financing, and cheaper and quicker newbuilds and repairs, with the aim of strengthening the US maritime industrial base and domestic supply chains. The Danske Maritime association, which represents more than 180 companies in the sector, is part of a Danish maritime ecosystem that employs more than 36,000 people and generates around 28 billion Danish kroner (US$4.2 billion) in annual gross value added.