Ocean carriers’ investments and partnerships keep Jacksonville-Puerto Rico trade lane strong

4 MIN READ

Written By Marcia Pledger

After decades of transporting goods to and from Puerto Rico, trade with the island represents about half of JAXPORT’s container business as the port’s international trade also continues to grow.

There are three domestic ocean carriers in Jacksonville that serve Puerto Rico, and they’re all committed to maintaining relationships and investments that benefit the island’s residents.

Executives from Crowley, TOTE Maritime Puerto Rico, and Trailer Bridge shared their outlook for the trade lane, as significant investments over the years are helping to stimulate economic development between the two communities.

Crowley‘s containerships are powered by liquefied natural gas (LNG) bunkered at JAXPORT’s Talleyrand Marine Terminal. Two eco-friendly ships – the Taíno and El Coquí – each operate weekly between Jacksonville and San Juan. The ships were part of a $500 million investment in the Jacksonville-Puerto Rico trade completed in 2019, which included terminal infrastructure and technology improvements in both locations.

The company also runs a barge service from Crowley’s own barge terminal in Jacksonville, as well as a North Atlantic barge service from Philadelphia.

Bob Goldenberg, Vice President of Crowley Logistics, described a positive economic outlook for Puerto Rico in 2025, as the Puerto Rico Planning Board forecasted a growth rate of 1.2% for the fiscal year 2025.

“This projection is supported by several factors, including an increase in federal funding for reconstruction and development and decelerating inflation. This stabilization is crucial for maintaining consumer purchasing power and overall economic stability and growth,” he said.

“Under these conditions, we continue to see strategic opportunities in the Jacksonville-Puerto Rico supply chain and transportation services for containerized cargo, LNG, Not-In-Trailer [oversized] cargo and equipment solutions via ocean transportation as well as related services such as warehousing and distribution.”

At Trailer Bridge, Chief Commercial Officer Jeff Vaughn said a few factors will impact Puerto Rico’s outlook over the next few years. These include the U.S. political landscape, sustainable energy efforts, and the ongoing rebuilding following past hurricanes.

“The people of Puerto Rico are passionate and resilient, so from that viewpoint – the outlook is bright,” Vaughn said. Vaughn is also encouraged by investments announced this year for the island’s port infrastructure. In March, Puerto Rico’s then-Governor Pedro Pierluisi announced a historic $85.3 million investment in rehabilitating the Army Terminal’s finger pier. The investment is key to increasing terminal efficiencies and supporting the company’s weekly service to the island.

Vaughn said investments being made on the island to support the longevity of the trade lane are crucial. 

“Carriers like us continue to work to ensure we have the right equipment and capacity to serve the shipping needs of our neighbors on the island. We continue to invest in our assets – like our barges – to ensure they are ready and able to handle the various types of equipment and goods that will be needed to support the efforts on the island,” he said.

Ocean carrier TOTE has also made investments that support the trade lane. The company spent more than $500 million in LNG assets, infrastructure, and technology to enhance the delivery of consumer goods to U.S. markets, including Puerto Rico. These include the world’s first two LNG-powered containerships, which were put into service in 2015 and 2016, and the LNG fueling barge Clean Jacksonville, which began operating in 2018. TOTE’s two eco-friendly containerships – the Perla del Caribe and the Isla Bella – also make weekly calls to San Juan. Investments in alternative fuel technologies help decarbonize its fleet.

Based in San Juan, TOTE Maritime Agency Puerto Rico Vice President and General Manager Eduardo Pagán said many statistics make him optimistic about the island’s future. In 2025, lower interest rates, faster disbursement of reconstruction funds, and the transition of reconstruction projects from the planning phase to the construction phase are expected to contribute to short-term economic growth, he said.

Pagán said that as of July 29, a total of $76.1 billion in federal reconstruction funds were obligated to Puerto Rico. “Construction investment is expected to pick up in 2025 and 2026 as reconstruction projects under design and evaluation enter the construction phase,” Pagán said. “The potential for growth in construction and economic growth remains promising.”

In 2024, TOTE expanded partnerships to provide more shipping solutions to the island. The company began partnering with STG Logistics to offer a rail-focused shipping solution to Puerto Rico from anywhere in the United States, complementing its ocean carrier services. The partnership aligns STG’s network of inland routes, ramp access, rail relationships, and equipment nationwide with TOTE’s three-day vessel transit time. TOTE Parent Company TOTE Group also recently acquired Aqua Gulf, a third-party logistics provider in Puerto Rico and the U.S., to provide additional services to customers. This acquisition was part of TOTE Group’s newly-created TOTE Logistics business line.

“We will continue working on innovation, decarbonization, and continuous improvement initiatives that can enhance our value proposition to our customers,” he said.