PARIS/FRANKFURT/HAVANA, May 17 – Shipping companies CMA CGM and Hapag-Lloyd announced on Sunday that they have stopped all bookings to and from Cuba until further notice. This decision follows a U.S. executive order iss...
PARIS/FRANKFURT/HAVANA, May 17 – Shipping companies CMA CGM and Hapag-Lloyd announced on Sunday that they have stopped all bookings to and from Cuba until further notice. This decision follows a U.S. executive order issued on May 1, adding to the economic struggles of the island.
The halt in new orders from these two major shipping firms could affect around 60% of Cuba's shipping volume, according to sources familiar with the matter. This comes as the country is already facing severe economic challenges due to a U.S. oil blockade limiting its fuel supply.
CMA CGM confirmed via an email that they would not be accepting bookings to or from Cuba until further notice, stating they are “closely monitoring the situation” and will adjust operations as needed to abide by regulations.
A representative from Hapag-Lloyd also stated that they are suspending shipments to Cuba “due to compliance risks associated with the U.S. executive order of May 1.”
The Cuban government has not yet commented on the matter.
The May 1 executive order expanded existing U.S. sanctions to include “any foreign person” involved in various sectors of the Cuban economy, including energy, defense, and financial services.
Imports from China are expected to be the hardest hit, along with significant impacts felt in Northern Europe and the Mediterranean. Overall, all shipping to Cuba will experience disruptions.
One major reason for the suspension is the aim to eliminate any shipping linked to Gaesa, a large business group associated with Cuba's military, which has faced heavy sanctions from the U.S.
This same executive order prompted Canadian company Sherritt International to withdraw from its nickel and cobalt mining activities in Cuba after many years of investment.
The decision by these shipping companies, first reported by online news outlet CiberCuba, could have dire consequences for the already strained Cuban economy, which struggles with shortages and rationing of essentials.
According to sources, Hapag-Lloyd and CMA CGM are considering several options. They may decide to permanently stop shipping to Cuba, or they could negotiate with the Trump administration to continue shipping solely to Cuba's private sector, which aligns with the administration's goal of supporting private businesses over state-run enterprises.