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Queed - Global News Network > Business > Port Congestion in Jamaica: A Growing Crisis Fueled by E-Commerce
Business

Port Congestion in Jamaica: A Growing Crisis Fueled by E-Commerce

Queed Reporter
Last updated: November 28, 2024 7:35 pm
Queed Reporter 7 months ago
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Jamaica’s ports, once primarily known for handling seasonal surges during the Christmas period, are now facing a growing crisis that has evolved into a year-round challenge. As e-commerce continues to skyrocket, experts warn that the island’s port infrastructure is struggling to keep pace with the mounting demand for goods, threatening to overwhelm the system if not addressed.

Keith Duhaney, manager of Dennis Shipping in Fort Lauderdale, recently pointed out during the Throp-X Investment Conference 2024 that the seasonal nature of port congestion is a thing of the past. “The low points are much higher than they used to be,” he stated. “It’s no longer just a Christmas issue. It’s a year-round problem.” While government officials downplay the situation, citing typical seasonal fluctuations, industry professionals are voicing concern over the increasing traffic and the need for urgent expansion of port facilities.

A key factor driving this ongoing congestion is the surge in online shopping. “One of the fastest-growing parts of the business now is people ordering online and having items delivered directly to the warehouse, where we then package and ship them out,” Duhaney added. As more consumers shop online and rely on e-commerce, the volume of goods arriving at Jamaica’s ports has reached levels never seen before.

Dennis Shipping, which manages a warehouse in Fort Lauderdale and specializes in trans-shipping containers for returning residents, has already begun to feel the strain. Duhaney revealed that a backlog has already started forming at the Montego Bay port for Christmas shipments, forcing the company to reroute some deliveries to Kingston.

“Montego Bay gets jammed up pretty quickly during the holidays,” Duhaney explained. “If you’re trying to get things for Christmas, I would recommend going through Kingston.” While Kingston has 25 commercial bays, Montego Bay only has two, making it significantly more prone to congestion. The growing number of containers from regions like Florida and New York only exacerbates the problem.

Even with Kingston’s greater capacity, shipping broker Roxanne Angela Stephenson noted that the port is also struggling with backlogs. “Our ports are just a mess right now, but we’ll get your things to you for Christmas,” she assured. Despite ongoing discussions with the authorities, there has been no viable solution to ease the congestion in sight.

In the face of mounting pressure, shipping companies are beginning to explore alternatives to alleviate the strain on public ports. “It’s at the point now where we’re considering getting our own warehouse,” said Duhaney. This would involve working directly with customs to clear goods and move them directly to private storage, bypassing the bottlenecks at the ports.

The issue is compounded by the dual-purpose nature of the Montego Bay port, which also serves as a cruise ship terminal. As cruise ships arrive, cargo vessels are often delayed in docking, further straining the port’s already limited capacity. Kingston, on the other hand, focuses primarily on cargo, which helps streamline operations, but it, too, is reaching its limits.

Experts have called for private investments in warehouse infrastructure as a potential solution. “Private investors can open bonded warehouses and work closely with the Jamaica Customs Agency to establish a smoother flow of goods,” Stephenson explained. This approach could help alleviate the pressure on public facilities by creating more space for goods, ultimately speeding up the movement of goods from ports to consumers.

With no immediate fix in sight for Jamaica’s congested ports, the call for expanded infrastructure, whether through government action or private investment, is louder than ever. As e-commerce continues to grow, the strain on the island’s port system is only likely to increase, and swift action is needed to prevent the situation from worsening.

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