Caribbean Supply Chains Face Geopolitical Squeeze
Leaders are sounding the alarm on growing risks to Caribbean supply chains from global instability. The Organisation of Eastern Caribbean States (OECS) issued a warning about the region's exposure to geopolitical tensions. This comes as Cuba's fuel crisis deepens after a key tanker was turned away, and the security situation in Haiti continues to deteriorate, threatening to disrupt regional shipping routes and raise costs.
The dual pressures of drought in the Panama Canal and instability in the Red Sea are forcing global shipping carriers to reroute, adding an average of 10 or more days to delivery times and increasing costs. This has a direct knock-on effect for Caribbean importers, who face higher freight rates and less predictable schedules for goods arriving from Asia and other distant markets. In Haiti, the security crisis has crippled port operations in the capital, Port-au-Prince, with gangs controlling an estimated 90% of the city. Armed groups have looted containers, forced terminal closures, and directly fired upon cargo ships, leading major carriers like CMA CGM to redirect vessels to the relatively safer northern port of Lafiteau. This insecurity severely disrupts the flow of all goods, including essential humanitarian aid. The fuel crisis in Cuba has ground much of the economy to a halt, with oil imports dropping to zero in January 2026 after key suppliers in Mexico and Venezuela stopped shipments under threat of U.S. sanctions. The shortage has led to widespread power outages and forced international airlines to suspend flights, as the island is unable to guarantee refueling for at least a month. This effectively severs key links in the regional supply and tourism chain. In response to chronic shipping challenges, a private-sector consortium is launching "Connect Caribe," a new cargo and passenger ferry service expected to begin operations in late 2024. The US$50 million project will utilize three vessels to connect islands including Barbados, St. Lucia, Trinidad, and Guyana, aiming to improve inter-island trade and reduce the region's high food import bill. High operating costs, including energy and logistics, remain a persistent challenge for the Caribbean hospitality sector. To mitigate these issues, some large resort development projects have turned to specialized logistics firms to manage consolidated purchasing and shipping from a central point, like Miami. This strategy allows for bulk negotiation of freight rates and better inventory control, reportedly saving millions on a single project. The Organisation of Eastern Caribbean States (OECS) has highlighted that regional port infrastructure has not kept pace with the demands of modern global shipping, creating a systemic vulnerability for the islands. With 90% of all Caribbean imports and exports transported by sea, leaders are calling for urgent investment in climate-resilient port development and a more integrated regional approach to manage external shocks.
