US-Caribbean maritime cooperation: Why stronger ports, supply chains, and security matter now

The Caribbean port imperative

The United States faces a critical infrastructure gap ninety miles from Florida, and it’s getting worse while competitors move in. So why should the US care?

• The Caribbean represents 43 percent of global cruise traffic. More than 60 million visitors annually must be supplied almost entirely by sea, mostly with US goods.
• There is a consistent US trade surplus with the region; Caribbean nations are reliable, high-volume customers for US exports.
• A $68 billion tourism economy is entirely dependent on functioning maritime infrastructure.
• The US Coast Guard seized 510,000 pounds of cocaine in the Caribbean and Eastern Pacific in 2025, as traffickers exploit the same weak port infrastructure that slows US trade.
• The port employee tenure averages three to five years while fifteen to twenty years are needed to build qualified professionals; this creates a workforce crisis that threatens any investment.

Accelerating coordinated US investment in Caribbean port infrastructure protects US economic interests and border security. The recommendations in this issue brief focus on mobilizing capital, deploying US expertise and technology, and ensuring investments tackle the data gap and develop a stronger workforce. These conclusions emerge from the Atlantic Council’s broader US–Caribbean maritime and ports programming, including the inaugural US–Caribbean Maritime and Ports Forum held in February 2026.

More than the “third border”

The Caribbean is often described as the United States’ “third border,” but this phrase does not fully capture its importance. The region is integrated into the United State’s economic and security systems. Caribbean ports move US goods, support US companies, and sit along critical maritime routes that directly affect US national security.

This relationship is both deep and uniquely favorable to the United States. The United States runs a consistent trade surplus with the Caribbean, meaning US businesses sell more into the region than they buy from it. These exports—ranging from food and construction materials to consumer goods—move primarily through maritime channels. Caribbean ports are therefore not distant infrastructure; they are essential links in US supply chains.

Geography reinforces this integration. The Caribbean lies just off the US coastline, with South Florida acting as a central logistics hub. Some shipping routes between Florida and Caribbean ports are shorter and used more frequently than domestic routes within the United States. This proximity allows for tightly connected supply chains and rapid movement of goods.

At the same time, the structure of Caribbean economies makes them natural long-term customers for US producers. Most Caribbean countries import most of their goods while exporting tourism services. This creates a stable, demand-driven relationship in which US exporters, shipping companies, and logistics providers already play a dominant role.

This economic system is inseparable from security. The same maritime routes that carry legitimate trade are also used for drug trafficking, irregular migration, and illicit financial flows. The US Coast Guard seized a record of nearly 510,000 pounds of cocaine in the Eastern Pacific and Caribbean in 2025 alone, where weak port security and infrastructure are the main factors of which traffickers take advantage. Limited data systems increase these risks, while stronger, more transparent systems improve both trade efficiency and security outcomes. For the United States, investing in Caribbean maritime infrastructure is a direct investment in economic strength and border security.

The case for investment: Every dollar not invested in Caribbean port infrastructure is a dollar lost to slower US exports, higher logistics costs for US companies, and increased border security risks. Modern, efficient Caribbean ports would reduce shipping times for US goods, lower insurance premiums for US exporters, and create natural checkpoints that disrupt trafficking networks while facilitating legitimate trade.

As shown in Table 1, the Caribbean tourism industry is a $68 billion economic system 60 million visitors annually and is heavily supported by maritime supply chains. At this scale, even small inefficiencies in port infrastructure can have system-wide effects across tourism, logistics, and supply chains.

A large but underestimated economic engine

Despite its importance, the full scale of US–Caribbean economic activity is not well measured. There is no detailed, publicly available dataset that clearly shows how much US trade flows into the Caribbean, through which ports, and at what cost. This lack of visibility makes it harder to attract investment and build policy support.

Without clear metrics on trade flows and economic impact, US policymakers and private investors cannot accurately assess returns on port infrastructure investment. This information vacuum allows competitors to define the narrative and create uncertainty that keep US capital on the sidelines.

Yet available indicators point to a system of significant size and influence. The Caribbean is the world’s largest cruise destination, receiving millions of visitors each year, accounting for 43 percent of all global cruise passengers in 2024 and often far exceeding the population of individual islands. Every visitor must be fed, housed, and supplied, and most of the goods needed to do so arrive by sea. Caribbean ports are therefore the logistical backbone of one of the world’s most intensive tourism economies.

This demand creates a steady flow of imports, much of it sourced from the United States. Food, fuel, construction materials, and consumer goods move continuously from US ports into Caribbean markets. The Caribbean is a reliable, high-frequency customer base already tied to US supply chains, not a speculative export destination.

Operational realities in the region further highlight its importance. In smaller island economies, delays in port operations are immediately felt across society. These constraints have pushed some ports, particularly in the Eastern Caribbean, to develop practical solutions to congestion and logistic challenges. Those examples can help inform broader regional improvements.

Taken together, these dynamics point to a large but underrecognized economic engine that is already deeply connected to the United States but lacks the data and visibility needed to support more strategic investment.

Security and trade: Two sides of the same system

Security challenges in the Caribbean are closely tied to the structure of maritime trade. Drug trafficking, smuggling, and irregular migration all rely on the same routes and infrastructure that support legitimate commerce. Weaknesses in port systems create opportunities for illicit activity.

Drug trafficking represents a major structural challenge. The scale of the narcotics trade generates significant financial flows, which can influence port operations, customs processes, and broader governance systems. This undermines both security and the reliability of the supply chain.

The dual return on security investment: Modernizing port security infrastructure delivers both security and economic benefits. US investment in scanning technology, data systems, and interdiction capabilities not only disrupts trafficking but also speeds legitimate cargo processing, reduces insurance costs for US exporters, and makes Caribbean port more attractive to US shipping lines.

Addressing these challenges creates clear economic benefits. Investments in cargo scanning, vessel tracking, and data analytics improve the ability to detect high-risk shipments while reducing delays for legitimate trade. This leads to faster clearance times, lower insurance costs, and improved port performance—factors that are critical for attracting investment.

Data plays a central role in this transformation. Traditional inspection systems often rely on checking a fixed percentage of shipments, regardless of risk. In contrast, data-driven approaches allow authorities to identify patterns and focus resources where they are most needed. This improves both efficiency and effectiveness.

Examples from the region demonstrate this potential. Artificial intelligence (AI)-supported vessel tracking systems have significantly increased the success rate of maritime enforcement operations by identifying high-risk behavior patterns. The US Navy’s Joint Interagency Task Force South (JIATF-South), based in Key West, Florida, uses AI-based pattern recognition and predictive heat mapping of vessel movements to direct interdiction assets across the Caribbean, contributing to record cocaine seizures in recent years. Similar approaches can be applied to cargo and logistics systems, creating a more secure and efficient maritime environment.

In this context, security and trade are part of the same system. Strengthening one strengthens the other.

Integrated investment in practice

The key lesson is not the scale of investment alone but the integrated approach—addressing infrastructure, sustainability, and operational efficiency together creates systems that are more resilient and more attractive to investors. Forum participants emphasized the potential to extend this model through formal partnerships between US ports and Caribbean counterparts, supporting knowledge transfer, technical assistance, and workforce development across the region.

Why integration matters for US investors: Fragmented, single-purpose port investments often fail because they address only one constraint while others remain. US-backed integrated projects that combine physical infrastructure, digital systems, environmental standards, and workforce training create higher-performing assets that generate stronger return and reduce long-term risk for US companies and investors.

Financing the gap

While the need for investment is clear, financing remains a major barrier. The core challenge is not only the availability of capital but whether projects can be structured in ways that attract it. Early-stage risk is a key constraint. Many projects struggle to move forward because of the high cost of feasibility studies and uncertainty around revenue streams. Multilateral development banks play an important role in addressing this gap by providing technical assistance, guarantees, and concessional financing. The 2016 Caribbean Development Bank (CDB) study “Transforming the Caribbean Port Services Industry” estimates that about $530 million would be needed to upgrade the Caribbean ports outside of Jamaica, which was not considered in the study.

Public-private partnerships (PPP) have emerged as an effective model for balancing investment and national ownership. The Nassau Container Port in Nassau, The Bahamas, is a good example of a PPP. Twenty percent of Nassau Container Port is owned by eleven thousand members of the Bahamian public through the stock exchange, 40 percent of the port is owned by the government of The Bahamas, and another 40 percent is held by Arawak Cay Port Development Holdings Limited, a consortium of private investors from the shipping industry.

Heavily indebted governments can retain strategic stakes while leveraging private capital and expertise through partnerships with the private sector. Kingston Freeport Terminal Limited (KFTL) in Jamaica is another example of financing port modernization. In 2015, CMA CGM Group created a special purpose vehicle (SPV) to manage and upgrade the Kingston Container Terminal (KCT) in Jamaica under a thirty-year concession agreement with the Port Authority of Jamaica. This approach meant the harbor was dredged to post-Panamax depths and the port and equipment were upgraded, but the strategic asset remains in the government’s hands. These projects illustrate financial engineering that allows for the maintenance of sovereignty.

US government tools also offer significant potential. Institutions such as the Export-Import Bank and the US International Development Finance Corporation can support projects through financing and risk mitigation.

The scale challenge: US financing mechanisms exist but currently operate at insufficient scale to compete with Chinese and other foreign infrastructure investment in the region. Mobilizing the capital needed to modernize Caribbean port infrastructure requires not just deploying existing tools more aggressively, but coordinating them strategically to ensure US expertise, technology, and material drive the buildout, creating US jobs while securing strategic influence.

Recommendations

To strengthen US–Caribbean maritime cooperation, the following actions are recommended:

• Commission a comprehensive data study on US–Caribbean trade flows. The United States should fund a rigorous, publicly available analysis of US export flows into the Caribbean, broken down by port, sector, and value. Without this baseline, the scale of the opportunity cannot be effectively communicated to investors, policymakers, or the public. The study should also inform a centralized, interoperable data platform accessible to port operators, shipping lines, cruise companies, and enforcement agencies, including border control, customs, and drug interdiction authorities. Modernized port data systems, digital single-window customs platforms, and data-driven risk management tools would improve trade efficiency while disrupting the information gaps trafficking networks exploit. The United States should also coordinate with Caribbean partners and European allies to develop a shared regional database on foreign infrastructure investment, strengthening transparency and risk-assessment capacity across the region.
• Launch a Caribbean 2035 Maritime Strategy in partnership with Caribbean nations. The Caribbean does not need another declaration; it needs a roadmap. The United States, in collaboration with Caribbean governments and regional institutions, should develop a long-term maritime strategy that aligns trade policy, logistics standards, digital frameworks, and port development planning. This strategy would reduce regulatory fragmentation across jurisdictions, attract larger-scale investment, and prevent wasteful infrastructure duplication. US backing channeled through the Caribbean Community (CARICOM), the Caribbean Development Bank, the Inter-American Development Bank, the World Bank, and other entities would provide both resources and strategic credibility. The strategy should also formalize “sibling port” or technical partnership arrangements—modeled on existing relationships with ports such as Miami or Seattle—and draw on European technical assistance programs, such as those offered by the Port of Antwerp, to support environmental and regulatory readiness.
• Scale US investment tools and financing mechanisms. The US State Department’s April 2026 announcement of $10 million for Caribbean port infrastructure is a meaningful first step, but significantly greater capital mobilization will be required. The United States should expand the use of blended finance structures as additional tools for mobilizing investment. Critically, these efforts must be coordinated and should prioritize the deployment of US expertise, materials, and technology in port construction and upgrades.
  • This matters for US competitiveness. Every port built on Chinese financing and operated under long-term foreign concession is a strategic asset the United States does not control. Scaling US investment tools ensures US companies win contracts, US workers benefit from construction and operation, and the United States maintains influence over infrastructure that directly affects its trade and security.
• Embed maritime and supply chain education into Caribbean academic and vocational systems. Supply chain management and maritime logistics are virtually absent from Caribbean educational curricula at all levels. Building a qualified port professional typically requires fifteen to twenty years of development, yet average employee tenure at Caribbean port operators is only three to five years, creating a critical succession gap with no systematic pipeline to fill it. The United States should partner with Caribbean governments and institutions to integrate port and supply chain management into university and vocational programs, establish bilateral workforce exchange mechanisms, and promote transparency on port economics so that communities understand and can advocate for maritime infrastructure investment. Existing benchmarks such as the World Bank’s “Trading Across Borders” indicators could be incorporated as measurable targets for progress.ss.
  • Workforce development as an investment priority: Infrastructure without operators fails. The three to five year employee tenure and fifteen to twenty year training gap means billions in port investment will underperform or fail without a qualified workforce to run it. US investment in Caribbean workforce development is protecting US capital by ensuring the ports US companies depend on can function efficiently and securely over the long term.

Conclusion

The inaugural US–Caribbean Maritime and Ports Forum demonstrated the value of sustained dialogue among governments, port operators, financial institutions, logistics providers, and security stakeholders. The forum should become an annual mechanism for coordinating regional priorities, tracking implementation progress, and identifying opportunities for investment and technical cooperation. Institutionalizing the forum would help bridge the persistent gap between strategic discussion and project execution while creating a consistent platform for engagement between Caribbean governments and US public- and private-sector actors.

The Caribbean is not a peripheral region; it’s a core component of the United States’ economic and security environment. Its ports support US trade, its routes shape regional stability, and its infrastructure is increasingly central to geopolitical competition.

The challenge is not recognizing its importance but acting on it. The tools, partnerships, and investment models needed to strengthen US–Caribbean maritime cooperation already exist. Action requires coordination, commitment, and scale. The opportunity is significant. So are the risks of inaction.

The views expressed in this publication are those of the authors alone. This brief draws on findings from the inaugural US–Caribbean Maritime and Ports Forum held February 19, 2026, in Miami, Florida, and three Atlantic Council Caribbean Initiative roundtables convened between September and October 2025, which included the participation of US and Caribbean private-sector leaders, public-sector representatives, and multilateral organizations. The convenings were conducted under the Chatham House Rule; direct attributions reflect on-the-record remarks only.

The US–Caribbean Maritime and Ports Forum was held in partnership with Florida International University, FGS Global, PortMiami, and Acero Capital, and was sponsored by Tropical Shipping.

Maite Latorre Yerou is an assistant director for the Caribbean Initiative at the Atlantic Council’s Adrienne Arsht Latin America Center.

Patricia R. Francis is a Jamaica-based nonresident senior fellow for the Caribbean Initiative at the Atlantic Council’s Adrienne Arsht Latin America Center.

The Adrienne Arsht Latin America Center’s Caribbean Initiative raises awareness on key Caribbean Community (CARICOM) priorities with US and global stakeholders while deepening US engagement with the region around shared interests.

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Image: Passengers disembark at the Costa Maya Cruise Port in Mahahual, Quintana Roo state, Mexico, May 20, 2026. REUTERS/Paola Chiomante