The recent suspension of parcel shipments to the US by Jamaica Post has left many micro, small, and medium-sized enterprises (MSMEs) searching for alternative shipping solutions — even as some believe this disruption may lead to positive change.

The disruption is expected to have far-reaching implications for the vulnerable sector, which relies heavily on cost-effective international logistics. The suspension, which took effect on August 26, 2025, came days before the implementation of a US executive order that ended duty-free treatment for low-value imports.

Effective August 29, the new order eliminated the long-standing de minimis rule — a Latin phrase which means too small to matter — which had allowed packages valued under US$800 to enter the US without customs duties.

In a notice issued in late August, Jamaica Post informed the public that it would suspend international parcel services “indefinitely until further notice.” The last outbound flight carrying merchandise parcels departed on August 28, 2025. Jamaica and other countries have been impacted by a new US regulatory shift, which has caused national postal agencies worldwide to halt goods shipments to the US due to uncertainty over the import rules.

Many small businesses regularly use local post to process online returns, fulfill e-commerce orders, or to send niche products such as handmade crafts, pastries, and spices. For many operators, the service offered them a more affordable and reliable means of reaching customers based in the US.

While Jamaica has experienced a surge in third-party logistics providers (3PLs) post-COVID, most of these services tend to focus on inbound logistics while outbound solutions, especially to international markets, are typically handled by major global couriers like DHL, FedEx, and Tara Couriers (an authorised local UPS contractor). However, these options often come at significantly higher costs and are particularly burdensome for smaller enterprises.

In response to the suspension, the Small Business Association of Jamaica (SBAJ) said it has been actively encouraging its over 600 members to explore alternative logistics options and to remain flexible in the face of ever-changing global trade conditions.

“This suspension is just one of many tariff-related shocks that the sector has experienced recently,” second vice-president of the SBAJ Denise Williams told the Jamaica Observer this week. “Trade is like a moving target right now and as such, we continue to urge our members to be adaptable and to build new partnerships where possible. As we navigate this very uncertain era, businesses must be prepared to roll with the changes — even when they have no control over what may come. This is very important if they are to continue to manage their operations.”

Williams indicated that with approximately 70 per cent of SBAJ’s membership comprising light manufacturers, retailers and traders, to “stand still” must never be an option. As such, she urged small businesses to rethink their logistics, pricing strategies and market positioning in order to remain competitive while keeping customer relationships strong.

With no clear timeline for the resumption of the affected postal services, some SMEs have already begun to look at regional markets for new areas of opportunity or even to form partnerships with international freight forwarders to maintain their export capacity.

Despite some growth in Jamaica Post’s Klick N’ Ship and FastTrack express shipping offerings, which saw usage increases of 17 per cent and 10 per cent, respectively, in 2024 — the local postal service, which has for a while continued to witness some amount of slowdown, last year processed approximately 1.7 million fewer pieces of mail. This underscored deeper structural challenges facing the sector, even before the recent policy change.

Williams further said that as the association continues to weigh impacts, small businesses in their own response can also look into more affordable options such as considering larger shipping solutions as they consolidate orders to reduce per-item tariff costs, exploring US-based fulfilment centres and drop-shipping models or even to engage in consignment arrangements.

She also recommended seeking support from organisations such as the Jamaica Manufacturers and Exporters Association (JMEA) to better navigate the shifting trade landscape.

As trade dynamics continue to shift, she further said that small size entities are now more than ever being urged not just to adapt, but to future-proof their business especially in critical areas such as logistics and supply chain management so as to better withstand external shocks.

Following a series of meetings led by SBAJ President Garnett Reid with representatives from the Indian, Chinese, and German embassies, Williams said the outlook remains “mostly positive,” as creative thinking and innovation across the sector continue to emerge in response to the challenges.

“The SBAJ is also open to meeting with the post office and other stakeholders. Given the changes we’re now facing, this is the time for partnerships and small business can no longer keep to business as usual,” she stated.

Meanwhile, the Young Entrepreneurs Association (YEA), in noting that most of its 200 members were largely unaffected by the postal suspension — as they already use private shipping services such as UPS and FedEx, said that the recent shift may however serve as a catalyst for innovation.

“This shift may be an opportunity for MSMEs rather than an issue. MSMEs often solve problems by creating business solutions. It also presents potential opportunities for those in the shipping and logistics industry to create more efficient alternatives from which smaller players can benefit,” President Cordell Williams said to the
Business Observer.

DHL, FedEx and Tara Couriers have been cited among a number of other logistics companies that provide outbound services.

WILLIAMS…this shift may be an opportunity for MSMEs rather than an issue. MSMEs often solve problems by creating business solutions. It also presents potential opportunities for those in the shipping and logistics industry to create more efficient alternatives from which smaller players can benefit

Members of the SBAJ met with the Indian High Commission recently. From left are Lionel Campbell of LionErica Security; Sanjay Gupta, second secretary (HoC); Denise Williams, 2nd VP at SBAJ and CEO of Public Relations by Financially Focused; Indian High Commissioner Shri Mayank Joshi; Garnett Reid, president of the SBAJ; Sean Grant, CEO of Sage Delights; Althea McPhearson of Thiah’s Juices; and Veneish Wallace of ElizaCare Home Health Care Services.