Christmas backlog set to become year-round jam
THE seasonal backlog of containers at Jamaica’s ports, traditionally associated with the Christmas rush, is quickly evolving into a year-round problem. Experts are warning that the ongoing rise in online shopping could put permanent strain on the country’s port infrastructure.
“The low points are much higher than they used to be. It’s no longer just a Christmas issue. It’s a year-round problem,” said Keith Duhaney, manager of the Dennis Shipping location in Fort Lauderdale, during a recent Throp-X Investment Conference 2024.
While government officials have downplayed the issue, citing seasonal peaks and valleys, industry players are observing a steady increase in traffic, making the expansion of port facilities critical.
“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.
Dennis Shipping, which operates a warehouse in Fort Lauderdale and handles the trans-shipment of containers for returning residents, has highlighted the urgent need for expanded warehouse space to manage the growing volume of goods. Already, a backlog has started forming for Christmas containers at the Montego Bay ports, forcing Dennis Shipping to reroute some of its customers to Kingston’s port.
“During the holidays, it’s chaotic,” Duhaney said. “Montego Bay gets jammed up pretty quickly. So, if you’re trying to get things for Christmas, I would recommend going to Kingston.”
Duhaney pointed out that Montego Bay has only two commercial bays for unloading containers, while Kingston boasts 25. With multiple shippers sending containers from regions like Florida and New York, the Montego Bay port can become congested quickly. As a result, he advises customers looking to receive shipments in time for Christmas to route them through Kingston, where the process is more streamlined and less prone to delays. However, shipping broker Roxanne Angela Stephenson explained that even Kingston’s port is facing its own backlogs.
“Our ports are just a mess right now, but we’ll get your things to you for Christmas,” Stephenson said.
Shipping stakeholders have been in meetings with the ports in Montego Bay, but so far, no resolution has been reached. They remain stuck unless the ports are expanded or private warehouses are established.
“It’s at the point now where we’re considering getting our own warehouse. We would work with customs so that when a Dennis Shipping container comes in, we could move it directly to our warehouse and have customs clear it there,” Duhaney said.
Stephenson explained that one issue is that the Montego Bay port serves both as a cargo port and a cruise ship terminal. When cruise ships are in port, some cargo vessels cannot dock until they depart. In contrast, Kingston mainly handles cargo, with only a few cruise lines operating there. This dual purpose of the Montego Bay port adds to the congestion.
“There have been calls for private investors to open warehouses. You can follow the rules and regulations, get in touch with the Jamaica Customs Agency, and they will guide you on how to establish a private bonded warehouse,” Stephenson shared.
She added that having a private warehouse would allow shipping companies like Dennis Shipping to not only store their own goods but also contract space to other shipping lines or freight forwarders. The more warehouse space available, the quicker goods can move from the ports to customers’ doors.