Caribbean Ports Brace for Congestion
Early 2026 is marked by persistent congestion signals across key Caribbean ports, impacting container turnaround and sailing schedules. Compounding the issue, tariff and trade policy shifts from late 2025 are now filtering into freight contracts, with carriers passing on increased compliance costs.
The new tariff regime is adding pressure to already strained logistics networks. On February 24, 2026, a temporary 15% import surcharge under Section 122 of the Trade Act of 1974 went into effect, replacing a previous 10% tariff system. This change is creating immediate cost calculation challenges for importers and is expected to keep landed costs elevated for goods entering the region. Major transshipment hubs are experiencing varied levels of strain. At DP World Caucedo in the Dominican Republic, port congestion was reported as low in mid-February 2026, with a median vessel waiting time of just 0.15 days. Meanwhile, Kingston, Jamaica, continues to manage high cargo volumes, with vessel schedules from late February showing steady arrivals and departures at its container terminal. Inter-island freight, a critical link for multi-property operations, is facing significant disruption. In Trinidad and Tobago, the vital sea bridge cargo ferry service was reduced from five to just three sailings per week in February 2026. This has blown out a predictable one-day supply cycle into a two- to three-day logistics scramble, with truck turnaround times extending to between 48 and 52 hours. The ferry disruptions in Trinidad and Tobago are leading to shortages and increasing the risk of spoilage for perishable goods due to inadequate refrigeration handling during prolonged waits. Businesses in Tobago have reported bare shelves and an inability to stock items like draft beer and certain foods, forcing some establishments to curtail operations. In response to such regional volatility, hospitality operators are exploring more resilient supply chain models. The limitations of a centralized supply chain are prompting a shift toward decentralized and regional distribution strategies to reduce shipping times and ensure business continuity. This approach allows individual properties or regional clusters to pivot more quickly when a single supply route is compromised. Technology is becoming a key enabler for managing multi-island logistics. Companies are increasingly adopting cloud-based infrastructure to unify processes like inventory and pricing across different locations without relying on site-specific servers. This move improves remote diagnostics and ensures system access is maintained even during local weather events or outages, providing a critical layer of operational stability.
