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After the first year of the Civil War, the Confederacy was faced with a serious problem. While the South had enjoyed some stunning victories on land, they had been all but cut off from the world at sea. The more industrialized North had realized that in case of an extended war, the best way to defeat the Confederacy was to starve it of supplies. The rebels started the war with no real navy to speak of, and so the federal government quickly set up a blockade of all Southern ports and river mouths. By depriving the South of revenues derived from its main export, cotton, the North seriously injured the Southern economy.
Without European intervention and the ability to build a navy that could rival the Union