Ocean Freight Transit Times Becoming More Predictable
Global port congestion has eased, leading to more predictable transit times for ocean freight, according to a C.H. Robinson market update. The improvement is credited to capacity realignment and better carrier scheduling. While this provides a more reliable baseline for inbound shipments to the Caribbean, the report warns that peak-season surges and weather events can still cause volatility, especially on feeder routes.
- Intra-regional trade among Latin American and Caribbean countries remains low, accounting for about 20% of the region's total trade. Key factors contributing to this include inadequate port infrastructure, high port charges, and complex customs processes. - Shipping costs within the Caribbean can be up to three times higher than moving a container across the Pacific. This is largely due to the one-way flow of commercial goods, where ships often travel south fully loaded but return north empty, making northbound shipping prohibitively expensive. - The Atlantic hurricane season, from June to November, poses a significant and recurring threat to ocean freight in the Caribbean, often causing sudden port closures and vessel rerouting. - While global schedule reliability for container shipping has been improving, reaching 59% in April 2025, it remains below pre-pandemic levels. For comparison, top-performing alliances like Gemini (Maersk and Hapag-Lloyd) have achieved reliability rates as high as 91% on some routes. - The Caribbean's fragmented geography and lack of a unified transportation network mean that maritime services can be infrequent and inconsistent, often dictated by larger international shipping routes rather than regional demand. This dependency on global transshipment hubs exposes Caribbean supply chains to external disruptions like geopolitical tensions and fluctuating fuel prices. - For multi-property resort operations, modern inventory management systems are shifting toward cloud-based platforms that offer real-time visibility across multiple locations. Technologies like RFID tags and IoT sensors are being used to automate tracking for items such as linens and minibar stock, which can reduce inventory tracking time by up to 90%. - In the Caribbean wholesale and distribution market, the average import lead time from the US or Europe to regional ports is between 14 and 28 days. Additionally, there is a freight cost premium of 15-25% compared to mainland distribution. - A hybrid distribution model, which combines a central hub for lower overall inventory with regional warehouses for faster final delivery, is a strategy some businesses are adopting to balance costs and improve service in geographically dispersed areas.
