Pacific Dragon: Is the Shipping Industry Ready for Containerized Missile Warfare?

The recent U.S. Navy exercise Pacific Dragon 2024 marked a pivotal moment in naval warfare, as it tested the launch of the Raytheon SM-3 Interceptor anti-ballistic missile from a containerized platform.

This development could drastically reshape maritime security, blurring the distinction between military and civilian vessels. The successful test demonstrated the potential for deploying missile defense systems, like the Mark 70 Mod 1 Payload Delivery System (PDS), from standard shipping containers, opening up possibilities for commercial ships to be armed with advanced defensive technologies. However, this raises serious concerns about the legal and security implications of transforming commercial vessels into military assets.

At the heart of this exercise was the Mark 70 PDS, a containerized version of the Navy’s Vertical Launch System (VLS), designed to fit four missile cells into a standard shipping container. This modular, mobile system can be transported easily and mounted on various platforms, including non-military ships. While the Pacific Dragon test relied on the Aegis system for missile guidance, future iterations could use simpler sensors, such as drones or commercial radar, to direct missile systems. Notably, the U.S. Navy had already demonstrated the ability to engage targets using offboard sensors during the Pacific Defender 24 exercise, indicating a move towards more flexible and decentralized defense systems.

The possibility of deploying containerized missile systems on commercial vessels introduces a new dynamic to maritime security, particularly in contested areas like the Red Sea, where Houthi missile and drone attacks are a constant threat. While this concept could enhance protection for merchant ships, it also creates profound risks. The idea of concealing advanced military hardware aboard commercial ships, enabling them to strike enemy targets, opens the door to hybrid warfare scenarios. Such covert weaponization could escalate tensions and present serious challenges to international maritime law and governance.

As nations like Russia and China continue to expand their missile capabilities, the strategic value of containerized missile systems becomes increasingly clear. These systems can be rapidly deployed to forward positions without detection, providing a tactical advantage. However, their proliferation could also exacerbate global security risks, especially if adversaries adapt similar tactics, potentially turning ordinary cargo ships into covert military platforms.

Pacific Dragon 2024’s success in launching the SM-3 from a containerized platform underscores the growing importance of these systems. Beyond bolstering Navy ships, containerized missile defenses could be installed on smaller vessels or commercial ships, utilizing offboard sensors to guide defensive actions. This capability would significantly enhance maritime defense, especially in high-risk areas.

Yet, the blurred lines between military and civilian assets pose significant risks. The possibility of arming commercial ships with containerized missiles not only heightens the threat of misuse by state actors but also raises the specter of non-state actors employing similar tactics with offensive capabilities. This concern is underscored by recent announcements from Anduril Industries about their Barracuda modular missile systems, which could also be launched from containers, transforming even basic cargo ships into formidable assets in future conflicts.

As the boundaries between civilian and military assets become increasingly indistinct, the risks of escalation and miscalculation grow, making it imperative for international bodies to address the legal and ethical implications of these technologies.