Antigua and Barbuda Faces High Shipping Costs as Caribbean Freight Rates Outpace Global Routes

From the CARISTATS archive: Caribbean Maritime Paradox: Distant Ports Cost Less Than Neighbouring Islands

Shipping a 40-foot container from Miami to The Bahamas, just 144 kilometres away, costs $3,800, more than double the $1,600 cost to ship the same container to Shanghai, China – a port on the other side of the world.

This counterintuitive pricing pattern affects most Caribbean ports, according to ECLAC’s 2024 International Trade Outlook.The freight cost paradox stems from structural challenges in Caribbean maritime logistics.

Port infrastructure struggles to accommodate modern vessels, creating higher costs due to limited cargo volumes. Limited route frequencies – often only weekly service – prevent efficient cargo consolidation, particularly for perishable goods.

The Liner Shipping Connectivity index confirms Caribbean nations score significantly below regional averages, except Jamaica and the Dominican Republic.

Market concentration among few shipping lines, combined with routes that return north empty, inflates costs.

ECLAC estimates freight costs to ship containers from Miami to some Caribbean destinations can be up to four times higher than shipping the same container to Argentina, Uruguay, or even China.

These elevated transport costs directly contribute to the Caribbean’s $5.16 daily cost for accessing a healthy diet – the world’s highest.

The proposed Barbados-Guyana regional food distribution hub, currently under construction with expected completion in 2026, represents a critical infrastructure intervention to address these challenges.

Source: ECLAC International Trade Outlook for Latin America and the Caribbean 2024Pledge your supportShare

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