Caribbean Supply Chain: Cost Structure, Customs and Operations
Sourced operational data on what moving goods through the Caribbean actually costs, how long customs takes, and where the friction sits.
Logistics costs as a share of GDP across Latin America and the Caribbean, versus approximately 9% in OECD economies
World Bank; Association of Caribbean States
Share of product value consumed by logistics costs, versus 8% in the OECD and approximately 10% in the United States
World Bank; Association of Caribbean States
Caribbean container shipping rates versus the cost of moving a container across the Pacific
Portside Caribbean, 2024
The defining feature of Caribbean supply chains is cost. Logistics costs across Latin America and the Caribbean run between 16 and 26 per cent of GDP, compared with roughly 9 per cent in OECD economies, and for many goods they reach as much as 35 per cent of product value, against 8 per cent in the OECD and around 10 per cent in the United States (World Bank; Association of Caribbean States). Caribbean container shipping rates are estimated at three times the cost of moving a container across the Pacific (Portside Caribbean, 2024).
These costs are structural, not incidental. Island geography rules out the land transport networks that lower costs elsewhere, customs and facilitation delays add a further 4 to 12 per cent to transport costs, and the region's exposure to hurricanes disrupts routes and infrastructure on an annual cycle (Association of Caribbean States; World Bank). Studies attribute roughly 75 per cent of transport-corridor delays to poor facilitation rather than poor infrastructure, which means much of the cost is addressable through policy and process rather than capital alone (Portside Caribbean, 2024).
For port throughput and freight-volume data, see our Caribbean logistics market analysis. This page focuses on the operational layer: what moving goods through the region actually costs, how long it takes, and where the friction sits.
What the Sources Publish: Cost and Time
Most cost and performance figures are reported for Latin America and the Caribbean together; where a Caribbean-specific figure exists it is labelled as such. LPI and border-compliance figures are country-level. These measures are not additive into a single market total, and none is published.
| Measure | Figure | Source |
|---|---|---|
| Logistics cost, share of GDP (LAC) | 16-26%, vs approximately 9% OECD | World Bank / ACS |
| Logistics cost, share of product value | up to 35%, vs 8% OECD, approximately 10% US | World Bank / ACS |
| Customs-clearance delay premium | +4% to 12% on transport costs | Association of Caribbean States |
| Caribbean shipping rates | Approximately 3x Pacific container cost | Portside Caribbean, 2024 |
| Share of corridor delays from poor facilitation | Approximately 75% (vs 25% from infrastructure) | Portside Caribbean, 2024 |
| Export border compliance time | 12h OECD; 16h Dominican Republic; 60h Trinidad; 96h Belize | World Bank Doing Business |
| World Bank LPI scores, Caribbean states (2023) | 2.3-2.7 on a 5-point scale, vs EU average above 3.5 | World Bank LPI, 2023 |
| LAC share of global maritime trade | Approximately 17% of maritime trade; 6.5% of global container port traffic | Trade Economics regional report |
Customs, Transit and Trade Facilitation
Export Border Compliance Time
World Bank Doing Business
of transport-corridor delays stem from poor facilitation, not poor infrastructure
Portside Caribbean, 2024
added to transport costs by customs-clearance delays across the region
Association of Caribbean States
World Bank Logistics Performance Index score for Caribbean states, on a 5-point scale where EU countries average above 3.5
World Bank LPI, 2023
Recommendations: a regional shipping centre of excellence, foreign-investment facilitation, and standardised cross-region rules to reduce administrative burden
UNCTAD Global Supply Chain Forum, May 2024, reported by Portside Caribbean
Cold chain capacity is a specific constraint on Caribbean supply chains; see our logistics market analysis for regional cold-storage and food-loss data.
What HRG Measures
Supply chain cost and performance data at the country and corridor level is thin, and most published figures cover Latin America and the Caribbean together rather than Caribbean markets individually. Where the data does not exist at the resolution a decision requires, it has to be collected. HRG conducts supply chain and distribution research across Caribbean markets: route and cost mapping, customs and clearance timing studies, 3PL and warehousing assessments, and retail and wholesale distribution audits.
Hope Research Group
Need Caribbean Supply Chain Intelligence?
HRG audits distribution networks, maps logistics channels, and tracks freight performance across 21 Caribbean and LATAM markets. Fixed-price proposals in 24 hours.
Frequently Asked Questions
How much do Caribbean supply chains cost?
Logistics costs across Latin America and the Caribbean run between 16 and 26 per cent of GDP, versus roughly 9 per cent in OECD economies, and reach as much as 35 per cent of product value for many goods (World Bank; Association of Caribbean States). Caribbean container shipping rates are estimated at about three times the cost of moving a container across the Pacific (Portside Caribbean, 2024).
How long does customs clearance take in the Caribbean?
Export border compliance takes about 16 hours in the Dominican Republic, 60 in Trinidad and Tobago and 96 in Belize, against 12 hours in OECD countries (World Bank Doing Business). Customs delays add an estimated 4 to 12 per cent to transport costs, and roughly 75 per cent of corridor delays stem from poor facilitation rather than infrastructure (Association of Caribbean States; Portside Caribbean, 2024).
How do Caribbean logistics rank internationally?
Caribbean states scored between 2.3 and 2.7 on the 2023 World Bank Logistics Performance Index, on a five-point scale where EU countries average above 3.5 (World Bank LPI, 2023).
Where can I find Caribbean port and freight volume data?
Port throughput and freight volumes are covered in our Caribbean logistics market analysis. This page focuses on supply chain cost, customs and operations.
Sources
- World Bank, Logistics Performance Index (2023) and Doing Business border-compliance data
- Association of Caribbean States, Transport, Logistics and Competitiveness in Latin America and the Caribbean
- Inter-American Development Bank, Freight Logistics in Latin America and the Caribbean
- Portside Caribbean, Logistics in the Caribbean: Time for a re-evaluation? (2024), and UNCTAD Global Supply Chain Forum, Barbados (May 2024)
- Caribbean Shipping Association, port capacity data
- First Citizens Group, Caribbean Trade and Logistics (2025)