Security Firm Urges Caribbean Shipping Review

The advisory follows a significant U.S. military buildup in the southern Caribbean under "Operation Southern Spear," which began in August 2025. The operation, aimed at countering drug trafficking, involves multiple warships, including the USS Iwo Jima amphibious ready group and the USS Gerald R. Ford carrier strike group, representing the largest such deployment in decades. This heightened naval presence has led to direct interventions, including the U.S. military's seizure of a sanctioned, unflagged oil tanker off the coast of Venezuela in December 2025. The operation involved U.S. forces rappelling from a helicopter onto the vessel, which was suspected of AIS spoofing to hide its location after departing a Venezuelan terminal. The increased military activity adds another layer of complexity to already challenging regional logistics. Caribbean shipping is characterized by fragmented infrastructure, high transportation costs, and inconsistent maritime services, which often lead to unpredictable delivery schedules and inventory shortages. Port handling charges can be two to three times higher than in other global ports. For example, the Trinidad and Tobago Chamber of Industry and Commerce recently highlighted worsening inter-island cargo movement, with ferry sailings cut from five to three per week. This reduction turned a one-day supply cycle into a two- or three-day logistical challenge, straining inventory and increasing operating expenses. The strict compliance with AIS protocols is critical as U.S. agencies and insurers view "going dark" as a red flag for illicit activity. Vessels found with deactivated AIS terminals can face fines of up to $50,000 per incident and risk invalidating their insurance coverage. This security environment is layered on top of climate-related disruptions. Severe drought in 2023 and early 2024 reduced water levels in the Panama Canal, forcing some ships onto longer, more expensive routes and increasing sailing distances by as much as 31%. U.S. Southern Command, in partnership with recreational sailing groups, has established a new voluntary float plan reporting system for vessels in the Caribbean. The system aims to help warships and patrol aircraft distinguish legitimate traffic from potential threats amid the heightened security operations.