Beneath the blue, the hidden costs of shipping in the Caribbean

In recent years, the Caribbean’s maritime landscape has presented growing challenges for global Protection and Indemnity (P&I) insurers. A succession of environmental incidents, weather-related events, and operational breakdowns have driven regional claims to their highest levels in decades, revealing the delicate equilibrium between opportunity and vulnerability in Caribbean shipping operations.

Oil on the Waves

The single biggest threat, and expense, for P&I clubs in the region remains ship-source oil pollution. High-profile spills, such as the 2024 barge incident off Tobago, triggered multi-million-dollar cleanups and environmental compensation claims stretching across tourism, fisheries, and coastal restoration. With each incident, the bill grows longer and the legal tangle thicker. For island economies that depend on pristine beaches, these accidents quickly escalate from maritime mishaps to national emergencies.

Groundings, collisions, and costly salvage

The Caribbean’s narrow passages and crowded anchorages often play host to groundings and collisions that evolve into far more expensive stories. When a vessel runs aground, it’s rarely just about hull damage. Wreck removal, salvage operations, and potential fuel leaks can multiply costs overnight. Investigations frequently trace the cause back to the basics: worn anchor chains, poor navigation watchkeeping, or insufficient pilotage in tricky coastal zones.

Cargo and Fire

A Growing Hotspot

Cargo-related claims remain a constant pulse in the region’s P&I statistics. Damaged, contaminated, or poorly stowed goods continue to drive disputes, but a newer concern is emerging, misdeclared hazardous cargo. Fires aboard container ships, sometimes linked to lithium-ion batteries and electric vehicles, are now one of the fastest-growing sources of major maritime losses. The Caribbean, sitting squarely on global shipping routes, isn’t immune.

People First

Crew Injuries and Repatriation

Behind every vessel lies its crew, and human-related claims make up a steady share of the region’s P&I cases. Medical evacuations, repatriations, and death or disability claims persist as operational realities. During the COVID-19 years, these costs surged as ships struggled with quarantine logistics and crew changes; a reminder that welfare management is more than a moral duty; it’s a financial shield.

When the Weather Turns

Hurricanes and tropical storms are part of life in the Caribbean, but they also act as annual stress tests for shipowners and insurers. A single major storm can leave behind wrecked vessels, lost cargo, and damaged port infrastructure. The frequency and intensity of recent hurricane seasons have added volatility to the P&I landscape, concentrating losses in a few devastating months.

The Paper Trail Problem

Not all risks float on the water. Several recent cases have shown how murky ownership structures and outdated vessel documentation can delay settlements and complicate liability. When shipowners hide behind layered registries or “flags of convenience,” local authorities are left to shoulder the cleanup until international funds or clubs step in.

Prevention Over Payouts

While the Caribbean’s maritime sector remains vital to global trade, its risk profile is rising.

From oil slicks to crew claims, most of these losses trace back to preventable failures: human error, poor maintenance, and slow response coordination.

For shipowners and insurers alike, the message is clear: effective prevention remains the most cost-efficient form of protection. Strengthening navigation protocols, enhancing pollution-response capabilities, ensuring transparency in vessel ownership, and refining seasonal route planning can significantly reduce exposure to loss.

In the Caribbean, calm seas can never be guaranteed, but the potential for costly claims almost always can.