Caribbean Freight Faces Mixed Conditions
Miami International Airport (MIA) reported a sixth consecutive year of air freight growth, strengthening its role as a key cargo hub for the Caribbean. Conversely, ocean freight is experiencing headwinds, with C.H. Robinson highlighting ongoing port congestion and volatile rates. Data shows that container ship calls in key Caribbean ports like Freeport continue to experience delays, impacting bulk shipment planning.
- MIA's air freight advantage is propelled by its unparalleled connectivity to Latin America and the Caribbean; 79% of all U.S. air exports to the region and 83% of all air imports pass through the airport. The growth is largely driven by e-commerce, pharmaceuticals, and perishables like flowers and produce originating from South and Central America. - Key air cargo carrier Amerijet International is expanding its fleet with B757 and B767 freighters to better serve destinations throughout its Caribbean, Mexico, and Central American network from its Miami hub. The B757 aircraft is particularly suited for the region's shorter runways and hot climates. - On the ocean freight side, Jamaica is making significant investments to establish the Port of Kingston as a major global logistics hub, aiming to become the fourth node alongside Singapore, Dubai, and Rotterdam. The port's expansion includes a US$80 million project to increase cargo capacity by 25% and reduce vessel congestion. - The Caymanas Special Economic Zone is being developed with direct connections to the Port of Kingston and Norman Manley International Airport, aiming to transition Jamaica from a transshipment point to a full-service logistics hub for industries like agro-processing, pharmaceuticals, and electronics assembly. - The trend of nearshoring—moving production closer to North American consumer markets—is expected to increase demand for logistics services in the Caribbean. Countries like the Dominican Republic and Jamaica are leveraging their logistical strengths and free trade zones to attract these investments. - Inter-island logistics remain a significant challenge, characterized by fragmented services, small shipment volumes, and inconsistent customs procedures that can make shipping to a neighboring island more costly than exporting to the U.S. or Europe. In one recent example, ferry service between Trinidad and Tobago was reduced from five to three sailings per week, extending a one-day supply cycle to three days. - To improve efficiency and visibility, logistics providers and governments are slowly adopting digital solutions like supply chain management software, AI-driven forecasting, and harmonized customs systems such as ASYCUDA World. However, a lack of standardized data and uneven technology adoption across the region remain obstacles.
