U.S. Navy MASC Program Drives Autonomous Ship Race as IMO Prepares First Global Rules

Overview

Autonomous shipping is entering a decisive phase. The U.S. Navy’s Modular Attack Surface Craft program has catalyzed a race among more than a dozen defense firms to build unmanned warships, backed by $2.1 billion in congressional funding. Simultaneously, commercial operators are deploying AI-powered navigation systems across thousands of merchant vessels, Norway’s pioneering autonomous container ship has passed 250 voyages, and the International Maritime Organization is preparing to adopt its first code governing autonomous ships in May 2026.

Taken together, these developments mark the moment when autonomous maritime technology transitions from isolated experiments to institutional commitment, spanning military procurement, commercial operations, and international regulation.

The MASC Program: A New Approach to Naval Shipbuilding

In 2025, the Navy consolidated its Large and Medium Unmanned Surface Vessel programs into the Modular Attack Surface Craft initiative, signaling a shift toward commercially derived designs that can be produced rapidly at existing shipyards. Congress backed the pivot with $2.1 billion allocated through reconciliation legislation for medium unmanned surface vessel development and acquisition, according to Defense News.

The program has attracted what Bryan Clark of the Hudson Institute described as “easily a dozen companies trying to be relatively big players” alongside “two or three dozen more that are small contributors.” Among the leading contenders, Blue Water Autonomy began construction in March 2026 at Conrad Shipyard in Louisiana on its 190-foot Liberty-class vessel, based on Damen’s Stan Patrol 6009 hull design. The ship is designed for 90 days of autonomous operation without crew, carrying more than 150 metric tons of payload over a 10,000-nautical-mile range, as Interesting Engineering reported.

Sea Machines Robotics, which has invested more than $55 million developing its SM300-NG autonomy stack over the past decade, unveiled its STEAMRACER-class vessel in February and announced it is positioned in the final competitive evaluation phase. The company’s pitch centers on field-proven autonomy rather than prototype-stage technology.

The competition expanded further when Korean defense conglomerate Hanwha and autonomy developer HavocAI signed a memorandum of understanding to jointly develop a 200-foot autonomous surface vessel aimed at the MASC solicitation, combining Korean shipbuilding expertise with American autonomy software, according to Defense Daily. Other known competitors include Huntington Ingalls Industries, Leidos, Anduril, Saronic, and BlackSea Technologies.

Blue Water Autonomy CEO Rylan Hamilton framed the program’s significance beyond its procurement value. “The MASC program has been a really strong signal to industry,” he said, noting that it motivated private investment ahead of Navy contracts. The company funded its development entirely with private capital, avoiding traditional federal program timelines.

Beyond Warships: Autonomous Logistics at Sea

The Defense Innovation Unit issued a separate solicitation in March 2026 for autonomous cargo vessels capable of transporting military supplies through contested littoral environments, with a response deadline of March 16. The specifications call for vessels that can carry at least nine tons of cargo at a minimum of 12 knots, with a range of 1,000 to 2,000 miles at full load and the ability to operate in sea state 5 conditions with waves up to 13 feet, as described by Defense News.

One notable requirement: the vessels must include a remote self-scuttling capability to prevent capture by adversaries, underscoring that the Pentagon views these ships as operating in genuinely contested waters rather than benign logistics corridors.

While military autonomous ships attract the largest funding, commercial shipping is advancing through incremental automation rather than full autonomy. Orca AI, an Israeli company that supported the first commercial autonomous voyage in 2022 alongside The Nippon Foundation, now has its AI-powered navigation platform installed on approximately 1,000 vessels worldwide, with contracts for an additional 1,500, according to IEEE Spectrum.

In March 2026, Orca AI expanded its platform to provide a full 360-degree field of view around vessels using three SeaPod lookout units, each fitted with thermal and optical cameras. CTO and co-founder Dor Raviv described the upgrade as “a foundational requirement for enabling safe autonomous operations,” noting that it overcomes line-of-sight limitations caused by deck equipment and improves collision prediction in dense traffic.

The system represents the dominant approach in commercial maritime autonomy for 2026: supervised automation where AI enhances human decision-making rather than replacing bridge crews entirely. The technology detects overtaking vessels and potential piracy threats while providing capabilities that traditional radar struggles with, particularly tracking small, fast-moving craft.

Yara Birkeland: Three Years of Autonomous Container Shipping

Norway’s Yara Birkeland, the world’s first fully electric autonomous container ship, marked three years of commercial service in early 2026. The 80-meter vessel has completed more than 250 voyages between Yara’s production facility in Porsgrunn and the Port of Brevik, transporting over 35,000 containers of fertilizer and replacing approximately 35,000 diesel truck journeys, according to Offshore Energy.

The ship has advanced its autonomous operations to include supervised auto-docking and auto-crossing functionalities. However, the trial period for fully autonomous operation without any crew aboard is still ongoing, with development of robust technical solutions taking longer than anticipated.

Built by Vard with a 6.8 MWh battery system from Leclanché and navigation equipment from Kongsberg Maritime, the Yara Birkeland demonstrates both the promise and the pace constraints of autonomous commercial shipping. After three years, the technology works reliably on a fixed short route, but scaling to open-ocean operations or varied port environments remains a future milestone.

Port Automation Accelerates

On shore, port automation has reached a $12 billion market in 2026, heading toward $22.4 billion by 2035. China operates 52 automated container terminals where AI systems coordinate truck-crane arrivals with 95 percent precision, up from roughly 60 percent under traditional manual dispatch, as EE Times reported.

Semi-automated solutions command 54 percent of the 2026 market, reflecting a practical balance between capital investment and operational returns rather than hesitation about technology. Ports that have adopted robotic automation report labor cost reductions of 25 to 55 percent while handling 10 to 35 percent more containers.

Digital twins now allow terminal operators to simulate and optimize cargo handling before physical operations begin, while private 5G networks provide the real-time connectivity that autonomous vehicle fleets and sensor arrays require.

Regulatory Framework Takes Shape

The International Maritime Organization is on track to finalize and adopt a non-mandatory Maritime Autonomous Surface Ships Code in May 2026, following a revised road map agreed at the Maritime Safety Committee’s 109th session in December 2024. The code will establish goal-based guidelines for autonomous vessel operations.

The regulatory pathway proceeds in stages: a framework for an Experience-Building Phase is scheduled for December 2026, development of a mandatory MASS Code begins in 2028, with adoption targeted by July 2030 and entry into force on January 1, 2032. Both the Maritime Safety and Legal Committees have identified the role and responsibilities of the master and remote operator as high-priority issues that must be resolved as a foundation for further regulatory work.

What Remains Uncertain

Several critical questions remain unanswered. The Navy has not disclosed how many MASC vessels it intends to procure, what annual production quantities it targets, or how many firms will ultimately receive contracts. The gap between prototype demonstrations and sustained fleet operations remains substantial for both military and commercial applications.

In commercial shipping, the Yara Birkeland’s experience suggests that even on a fixed short route, achieving fully unsupervised autonomous operation takes years longer than initial projections. Whether the IMO’s non-mandatory code will provide sufficient regulatory clarity for operators and insurers to deploy autonomous vessels on international routes is untested.

The legal framework also lags the technology. Concepts such as fault, negligence, and intention require reconsideration when applied to harm caused by autonomous systems rather than human operators, and the IMO has acknowledged these as open questions that the Experience-Building Phase is designed to explore.

What is clear is that autonomous maritime technology has moved beyond the demonstration phase. With billions in military funding, thousands of commercial vessels running AI navigation, and international regulations approaching adoption, the question is no longer whether autonomous ships will operate at scale, but how quickly the infrastructure of rules, insurance, and operational experience can keep pace with the hardware.