Caribbean Logistics Market 2025: $4.8B Market Size, Freight Volumes & Port Infrastructure Data

The Caribbean logistics market is a US$4.8 billion ecosystem encompassing ocean freight, port infrastructure, warehousing, customs brokerage, and last-mile delivery across more than 15 island economies. With 9.5 million tonnes of freight moving through the region annually and 7.1 million TEUs of container traffic processed at Caribbean ports in 2024, the sector serves as the critical supply chain backbone for economies that import 80% to 95% of consumed goods — including the $6B+ in annual food imports the region depends on (UNCTAD Review of Maritime Transport, 2024; ECLAC Maritime Bulletin, 2024).

Caribbean Logistics Market Size & Growth Trajectory

The Caribbean freight and logistics market reached an estimated US$4.8 billion in 2024, growing at a compound annual growth rate of 5.2% from the pre-pandemic baseline of US$3.7 billion in 2019 (ECLAC, 2024). This growth trajectory reflects both the recovery from the 2020 pandemic contraction, which saw freight volumes decline by 17% across the region, and structural demand increases driven by e-commerce penetration, cold chain expansion, and growing consumer imports across major Caribbean economies (UNCTAD Review of Maritime Transport, 2024).

The Caribbean logistics market value is distributed across several key segments: ocean freight services account for approximately US$1.82 billion (38% of market), port handling and terminal operations represent US$1.06 billion (22%), customs brokerage and regulatory compliance services total US$864 million (18%), inland transportation and last-mile delivery generate US$576 million (12%), warehousing and distribution contribute US$336 million (7%), and insurance, documentation, and administrative services make up US$144 million (3%) (World Bank Logistics Performance Index, 2024; ECLAC, 2024).

Port Infrastructure & Container Throughput

Caribbean port infrastructure is anchored by three major transshipment hubs that handle the bulk of regional container traffic. For analysis of how cruise and cargo port operations interact, see our Caribbean Cruise Port Economics report. Kingston Container Terminal in Jamaica processed approximately 1.82 million TEUs in 2024, maintaining its position as the Caribbean's premier transshipment hub and one of the busiest ports in the Western Hemisphere. The terminal's strategic location at the intersection of major east-west and north-south shipping lanes, combined with its post-Panamax vessel capacity, makes it a critical node in global container shipping networks (Port Authority of Jamaica, 2024).

DP World's Caucedo terminal in the Dominican Republic handled approximately 1.45 million TEUs in 2024, serving as the primary gateway for the Dominican Republic's rapidly growing consumer import market and an expanding transshipment operation connecting Central American and Caribbean feeder routes (ECLAC Maritime Bulletin, 2024). Freeport Container Port in the Bahamas processed 1.38 million TEUs, leveraging its proximity to the US East Coast to serve as a key transshipment point for North America-Caribbean trade flows (Hutchison Ports, 2024).

Source: ECLAC Maritime Bulletin, Port Authority of Jamaica, DP World, Hutchison Ports, national port authorities, 2024. TEU figures are estimated based on published throughput data and industry reports.

Freight Volume Trends & Recovery

Total freight volumes across Caribbean ports reached approximately 9.5 million tonnes in 2024, surpassing the pre-pandemic level of 8.2 million tonnes recorded in 2019 and representing a full recovery from the 6.8 million tonne low of 2020 (UNCTAD Review of Maritime Transport, 2024). Containerized cargo accounted for 6.2 million tonnes of the 2024 total, with the remainder consisting of bulk commodities including petroleum products, construction materials, agricultural inputs, and mineral exports from Guyana and Trinidad & Tobago.

The containerized freight segment has grown faster than total freight volumes, reflecting the ongoing shift from break-bulk and bulk shipping to containerization across the Caribbean. Container penetration of total freight rose from 62% in 2019 to 65% in 2024, driven by increased consumer goods imports, growing e-commerce parcel volumes, and the containerization of agricultural exports including bananas, cocoa, and specialty food products from Eastern Caribbean origins (ECLAC, 2024).

Major Shipping Routes & Trade Corridors

The Caribbean is served by five primary shipping corridors that connect the region to global trade networks. The US East Coast-Caribbean route is the dominant trade lane, with Miami, Jacksonville, and Port Everglades serving as the primary load ports for consumer goods, food products, and manufactured items destined for Caribbean markets. An estimated 65% of all Caribbean-bound containerized imports originate from or transit through South Florida ports, making the Miami-Caribbean corridor one of the most concentrated trade dependencies in global shipping (US Maritime Administration, 2024).

The Panama Canal-Caribbean feeder network has grown in importance following the canal's 2016 expansion, enabling larger vessels to transit and increasing Asia-origin cargo flows through Caribbean transshipment hubs. Kingston and Caucedo serve as the primary relay points for this traffic, with feeder services distributing containers to smaller Caribbean destinations. European services from Rotterdam, Algeciras, and Mediterranean ports provide direct connections for EU-origin goods, while intra-Caribbean feeder networks operated by regional carriers like Tropical Shipping and Crowley connect hub ports to smaller island destinations with limited draft or infrastructure (UNCTAD, 2024).

Source: UNCTAD Review of Maritime Transport, US Maritime Administration, ECLAC, 2024. Import share percentages are estimated based on containerized cargo origin data.

Logistics Cost Analysis: The Island Premium

Logistics costs in the Caribbean represent 20% to 30% of the final landed cost of imported products, significantly exceeding the 8% to 12% average in mainland economies and creating a structural cost disadvantage for Caribbean businesses and consumers (World Bank Logistics Performance Index, 2024). This "island premium" is driven by low cargo volumes that reduce economies of scale, limited port infrastructure requiring multiple transshipments, high fuel costs for inter-island distribution, and customs procedures that add time and cost to supply chains.

Ocean freight represents the largest single cost component at 38% of total logistics spend, reflecting the Caribbean's near-total dependence on maritime transport for goods imports. Port handling costs at 22% are elevated by congestion at smaller ports, limited mechanization, and shorter operating hours compared to major international terminals. Customs and regulatory compliance costs at 18% reflect the complex duty structures, documentation requirements, and inspection protocols that vary across Caribbean jurisdictions (ECLAC, 2024).

Container Traffic Growth & Transshipment Dynamics

Regional container traffic reached 7.1 million TEUs in 2024, growing from 5.8 million TEUs in 2019 at a compound annual growth rate of 4.1% (ECLAC Maritime Bulletin, 2024). Transshipment cargo accounts for approximately 60% of total Caribbean container movements, with Kingston, Freeport, and Caucedo functioning as relay points in global shipping networks rather than purely serving domestic import-export demand. This transshipment function has been a critical driver of port investment and infrastructure development across the region.

The Panama Canal expansion has reshaped Caribbean transshipment patterns, enabling Neo-Panamax vessels of up to 14,000 TEUs to transit the canal and discharge cargo at Caribbean hub ports for redistribution via smaller feeder vessels. Kingston Container Terminal has invested over US$600 million in terminal expansion and dredging to accommodate these larger vessels, deepening the port's competitive position against rival transshipment hubs at Cartagena, Colombia and Balboa, Panama (Port Authority of Jamaica, 2024; Caribbean Maritime Institute, 2024).

Cold Chain Logistics: A Growing Imperative

Cold chain logistics represents one of the fastest-growing segments of the Caribbean logistics market, valued at approximately US$420 million in 2024 and growing at 7.8% annually (Caribbean Development Bank, 2024). The segment encompasses refrigerated container transport, cold storage warehousing, temperature-controlled last-mile delivery, and pharmaceutical distribution requiring strict temperature compliance. Caribbean economies import an estimated 60% to 80% of food products consumed, with perishable categories including dairy, meat, fresh produce, and frozen foods requiring unbroken cold chain integrity from origin to retail shelf (FAO, 2024).

Cold storage capacity across the Caribbean remains limited relative to demand, with total regional capacity estimated at approximately 850,000 cubic meters, of which Jamaica accounts for 28%, Trinidad & Tobago for 22%, and Puerto Rico for 35% (Caribbean Development Bank, 2024). Smaller Eastern Caribbean islands face acute cold storage shortfalls, with facilities often operating at 90% to 95% capacity during peak seasons. This infrastructure gap leads to food waste rates of 15% to 25% for perishable imports, representing both a cost burden on consumers and a market opportunity for cold chain infrastructure investors (FAO Caribbean Office, 2024).

Last-Mile Delivery Challenges & Innovation

Last-mile delivery in the Caribbean faces structural challenges that are unique among global logistics markets. Dispersed populations across multiple islands, limited road infrastructure, informal addressing systems in many territories, and high fuel costs combine to make Caribbean last-mile delivery 2.5 to 4 times more expensive per package than comparable mainland operations (World Bank, 2024). In markets like Jamaica, where only 65% of roads are paved and mountainous terrain limits direct routing, last-mile costs can represent 40% to 50% of total delivery expense (National Works Agency Jamaica, 2024).

Innovation in Caribbean last-mile delivery is being driven by e-commerce growth and the entry of regional logistics startups. Companies like Knutsford Express in Jamaica, Caribbean Courier Solutions, and island-specific operators are developing hybrid delivery models that combine traditional courier networks with pickup point infrastructure, locker systems at retail locations, and community delivery hubs in rural areas. These models address the addressing challenge by using GPS coordinates and mobile phone-based delivery confirmation rather than relying on formal street addresses that may not exist in many Caribbean communities (Caribbean Development Bank, 2024).

E-Commerce Logistics & Cross-Border Fulfillment

E-commerce logistics has emerged as the fastest-growing segment of the Caribbean logistics market, driven by online retail penetration that has increased from 3% to 5% pre-pandemic to 8% to 12% across major markets in 2024 (ECLAC Digital Economy Report, 2024). Caribbean consumers increasingly purchase from US-based e-commerce platforms including Amazon, Walmart, and specialty retailers, creating demand for cross-border fulfillment, package consolidation, and duty management services.

Miami-based freight forwarders and consolidators have become critical infrastructure for Caribbean e-commerce, processing an estimated 2.3 million packages annually for Caribbean-bound shipments (Caribbean Development Bank, 2024). Services like mailbox forwarding addresses, package consolidation, duty pre-calculation, and delivered-duty-paid shipping have become standard offerings from companies including Mailpac, Zippy Jamaica, and FedEx Caribbean. These consolidators reduce per-package shipping costs by 30% to 50% compared to individual parcel shipments by combining multiple consumer orders into containerized or palletized shipments for ocean freight (IMF Caribbean Regional Outlook, 2024).

Source: ECLAC, World Bank, Caribbean Development Bank, IMF, 2024. Market values are HRG estimates based on published trade, port, and logistics data.

Future Outlook: Digital Transformation & Infrastructure Investment

The Caribbean logistics market is poised for significant transformation driven by three converging trends: digital customs and trade facilitation modernization, port infrastructure investment exceeding US$2 billion in committed projects through 2028, and the rapid growth of e-commerce-driven logistics demand. Jamaica's National Logistics Hub Initiative, which aims to position the country as a fourth global logistics node alongside Singapore, Dubai, and Rotterdam, represents the most ambitious infrastructure program in the region with US$8 billion in projected investment over 15 years (Government of Jamaica, 2024).

Digital trade facilitation, including single-window customs systems, electronic bills of lading, and blockchain-based cargo tracking, is being piloted across several Caribbean jurisdictions with support from the World Bank and Inter-American Development Bank. Trinidad & Tobago's TTBizLink and Jamaica's ASYCUDA World systems are reducing customs clearance times from an average of 5 to 7 days to 2 to 3 days in participating territories, directly lowering logistics costs and improving supply chain reliability (World Bank Trade Facilitation Support Program, 2024).

For logistics providers, freight forwarders, port operators, and supply chain investors operating in the Caribbean, the key strategic considerations include the pace of customs modernization, cold chain infrastructure development opportunities, the growing e-commerce fulfillment segment, and the competitive dynamics among Caribbean transshipment hubs competing for Asia-Americas relay traffic. Hope Research Group tracks these trends across 30+ Caribbean and Latin American markets to support data-driven logistics planning and market entry strategy.

HRG Research Capabilities in Caribbean Logistics Markets

Hope Research Group supports shipping lines, port operators, freight forwarders, e-commerce platforms, cold chain operators, and supply chain investors operating across Caribbean logistics markets. Our research capabilities include market sizing and demand forecasting, trade flow analysis, port competitiveness benchmarking, last-mile delivery consumer preference studies, and competitive landscape assessments across ocean freight, warehousing, and customs brokerage segments.

For businesses planning market entry, infrastructure investment, or service expansion in the Caribbean logistics sector, HRG provides primary research that quantifies freight demand, cost structures, service gaps, and competitive positioning across relevant markets. Our field research teams operate across Jamaica, Trinidad & Tobago, Barbados, the Dominican Republic, Puerto Rico, the Bahamas, and Eastern Caribbean OECS markets, delivering the on-the-ground intelligence that secondary data sources alone cannot provide.

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