By Sean P. Gazitúa, President & CEO, WTDC
In light of Summit of the Americas 2026 including cruising into its programming, let’s examine how global trade, travel retail, and cruise logistics are integrally tied. As president and CEO of a worldwide logistics company and foreign trade zone, we are ever cognizant of the ways the Duty Free and Travel Retail industry sits at the intersection of geography, policy, international commerce, and global disruption.
Did you know that nearly 4 out of every 10 cruises worldwide sail in the Caribbean? Cruise Lines International Association (CLIA) shared this insight in their 2025 State of the Cruise Industry Report. U.S. ports, especially in Florida, act as passenger gateways supply hubs and to stock these floating marketplaces with luxury goods, spirits, electronics, and tobacco. Their proximity to the Caribbean allows for shorter itineraries and higher turnover. PortMiami, Port Everglades, and Port Canaveral are all improving their infrastructures to serve these high volumes of travelers. Florida FTZs and bonded warehouses efficiently provision the ships year-round, delivering duty free inventory to the ships before departure.
This operational backbone is made possible through trade mechanisms that enable efficiency and cost control. U.S. Foreign Trade Zones, such as WTDC, assist companies with mitigating tariffs by allowing goods to be imported, stored, processed, or assembled without immediately incurring customs duties. In an FTZ, companies can defer, reduce, or even eliminate tariffs on goods that are re-exported or used in manufacturing. FTZs have streamlined customs documentation and procedures, reducing paperwork and improving the time it takes to bring cargo into the FTZ. FTZs are secure areas under U.S. Customs and Border Protection (CBP) supervision and are considered outside CBP territory. WTDC has tailored its operation to meet the unique needs of the Duty Free and Travel Retail industry, facilitating the flow of foreign products through Miami without the importer being subject to duties and taxes, as all cargo for this industry is export-only.
Extending our view beyond the U.S., developments in the Panama Canal continue to shape flow of global trade. On February 23, 2026, APM Terminals began operations at Port Balboa on Panama’s west coast following a January decision by Panama’s Supreme Court to strip the operation from Hong Kong’s CK Hutchinson after nearly three decades in operation. The takeover grants APM temporary operation for 18 months and use of all existing infrastructure. Terminal Investment Limited, a division of MSC, will operate the Port of Cristobal on Panama’s east coast. These abrupt changes illustrate how regional infrastructure decisions and changes in policy directly impact the logistics networks that support the flow of cruise, travel retail, and global trade flows. U.S. policy changes towards Cuba and Venezuela have drawn interest for these same reasons in recent weeks. But few changes to the global landscape have been as impactful as last year’s broad implementation of tariffs by the U.S.
On February 20, 2026, the U.S. Supreme Court ruled that the tariffs imposed by President Trump exceeded the powers given to the president by Congress in the International Emergency Economic Powers Act (IEEPA). And while Duty Free and Travel Retail products traveling through the U.S. in bond are not directly affected, the IEEPA tariffs had a significant ripple effect through the trade and logistics community, especially on companies that maintain duty free and U.S. import operations. Many companies went through hardship or changed their operations due to the tariffs, including an explosion of FTZ applications by importers. The repeal makes an estimated $160-$175 billion in tariffs collected under the IEEPA eligible for refund. As a result, attention has now shifted towards the practical challenges of implementing the refunds.
On March 12, 2026, CBP revealed in court filings that they are building new tools to manage the IEEPA refund process. Over 1,000 companies have filed lawsuits in the U.S. Court of International Trade to protect their right to reimbursement while the government finalizes the refund mechanism.
Companies that leverage tools like FTZ will be better able to adjust to policy changes and navigate any disruptions to the supply chain.
