Accessibility not enough: Caribbean needs stronger links

WHILE THE Caribbean boasts improved access to global shipping routes, a new study reveals a critical gap: connectivity. This means that while ships are arriving, the efficiency and cost of these connections are hindering regional trade and economic growth.

Researchers Ricardo Sanchez and Alejandra Gomez explored the issue, differentiating between accessibility – simply reaching a location – and connectivity, which includes factors like reliability, speed, and cost-effectiveness. Their study, published on PortEconomics’ website, used data-driven analysis to examine liner shipping services, the backbone of maritime trade.

The findings are stark. Despite increased ship sizes and frequency, the Caribbean continues to grapple with high freight rates, inconsistent service reliability, and limited shipping options. This disparity between accessibility and connectivity is a major obstacle for businesses and consumers alike.

The study found that while some Caribbean areas enjoy strong shipping links to global markets, others remain underserved. European carriers dominate the market, but Asian shipping lines are growing in influence, with hub ports like Panama playing a crucial role in regional connectivity.

The research stresses the urgent need for a comprehensive approach to address these challenges. Investing in port infrastructure, promoting competition among shipping lines, and implementing policies to enhance service reliability are essential steps.

A key finding is the disparity in liner service offerings across the Caribbean. While some regions, like the east coast of Central America and Panama, enjoy significant connections to Asia and Europe, other islands, such as those in the Windward and Leeward groups, have limited options.

The study also highlights the growing importance of Asia as a trading partner for the Caribbean. Shipping routes to Asia have increased significantly in recent years, with larger vessels being deployed. However, the cost and reliability of these services remain a concern.

To improve connectivity, the study recommends a focus on enhancing port infrastructure, promoting competition among carriers, and implementing policies to improve service reliability. By addressing these issues, the Caribbean can reduce trade costs, increase the competitiveness of its exports, and stimulate economic growth.