Jamaica’s shipping industry, long familiar with seasonal port congestion, is now grappling with a year-round challenge as the growth of e-commerce continues to stress the country’s port infrastructure. Experts argue that the surge in online shopping, which has traditionally spiked around the holiday season, is now a persistent issue requiring urgent attention.
“The peaks we once saw only during Christmas are now happening all year long,” explained Keith Duhaney, manager at Dennis Shipping’s Fort Lauderdale warehouse, speaking at the Throp-X Investment Conference 2024. Duhaney highlighted how the increased volume of goods flowing through the island’s ports is pushing the system to its limits.
Despite government officials downplaying the issue, attributing it to the normal seasonal flux, those working on the ground in the shipping industry are seeing an undeniable trend: more traffic, more delays, and more pressure on port facilities.
“One of the fastest-growing segments of our business is direct-to-warehouse orders from online retailers,” Duhaney shared. Dennis Shipping, which specializes in transshipment for returning residents, has already begun experiencing a bottleneck. As Christmas approaches, a backlog is building up at Montego Bay’s port, forcing some shipments to be rerouted to Kingston.
“Montego Bay is very limited,” Duhaney said, referring to the port’s only two commercial bays. In comparison, Kingston boasts 25 commercial bays, making it a more viable option during peak times. As Montego Bay continues to struggle with congestion, Duhaney advises customers to direct their shipments to Kingston if they want to avoid delays, especially for time-sensitive deliveries.
Shipping broker Roxanne Angela Stephenson, who works closely with both ports, echoed these concerns, noting that even Kingston is not immune to the ongoing backlog. “Our ports are in a state of chaos, but we’re doing everything we can to ensure deliveries are made in time for Christmas,” she said.
Port congestion is a multifaceted issue. While Kingston’s port primarily handles cargo, Montego Bay doubles as a cruise terminal, creating further complications. When cruise ships dock, cargo vessels are often delayed, exacerbating the bottleneck. This dual-use scenario puts additional pressure on Montego Bay’s limited capacity, making it more prone to gridlock.
To alleviate the burden on public ports, many stakeholders are considering private solutions. Duhaney revealed that Dennis Shipping is exploring the option of establishing its own warehouse. This would allow for more streamlined processing, enabling containers to bypass port delays and go directly to the warehouse for customs clearance. “We’re looking into working with Jamaica Customs to set up a private bonded warehouse so that we can process shipments faster and with fewer obstacles,” Duhaney explained.
Stephenson pointed to the potential role of private investors in alleviating some of the congestion. “Private bonded warehouses are a solution. They would ease the strain on public ports and allow shipping companies to store goods more efficiently,” she said.
For Jamaica’s shipping industry to remain competitive and efficient, expansion—both at the ports and through private warehousing solutions—will be crucial. As e-commerce continues to rise, ensuring that the infrastructure can handle the growing demands will be key to maintaining smooth operations year-round.
