The maritime giants CMA CGM and Hapag-Lloyd announced this Sunday, independently, the suspension of all cargo reservations destined for or originating from Cuba until further notice. Both companies justified the decision due to the risks associated with the executive order issued by the United States on May 1st, which represents another blow to the battered economy of the Caribbean island.
"Following the U.S. executive order issued on May 1st, CMA CGM has decided to suspend its reservations with destination or origin from Cuba until further notice," the French shipping company stated in a communiqué sent by email. The company added that "it is closely monitoring the situation" and will adjust its operations in accordance with applicable regulations.
For its part, a spokesman for Hapag-Lloyd confirmed that the German shipping company also suspended its orders related to Cuba "due to the compliance risks associated with the executive order from the U.S. president on May 1st." The Cuban government did not immediately respond to a request for comments on these decisions.
The temporary suspension of new orders by two of the largest shipping companies in the world could jeopardize up to 60% of Cuba's maritime traffic in volume terms, according to two sources with direct knowledge of the situation. The impact would be a harsh setback for a country that is already on the brink of collapse amid a U.S. oil blockade that has deprived the island of much of its fuel supply.
The decree signed by Trump on May 1st expanded existing U.S. sanctions on trade with Cuba to include "any foreign person" operating in the sectors of "energy, defense and related materials, metals and mining, financial services, or security of the Cuban economy, or any other sector of the Cuban economy."
According to the consulted sources, the transport of goods coming from China would be the most affected by the measure. Routes from Northern Europe and the Mediterranean would also be severely impacted, although all global maritime transport destined for Cuba will be affected to a greater or lesser extent.
One of the key considerations behind the suspensions, the sources pointed out, is the need to identify and eliminate any shipment linked to Gaesa, an extensive business conglomerate tied to the Cuban armed forces that has been subjected to severe sanctions by the United States.
The same executive order already prompted weeks ago the withdrawal of the Canadian miner Sherritt International from its nickel and cobalt extraction operations in Cuba, after decades of investment in the country.
The decision by the shipping companies, first reported by the digital outlet CiberCuba, would have devastating consequences for Cuban imports, which are essential to keep stores stocked in a country already punished by scarcity and rationing.
The sources indicated that several options are on the table for Hapag-Lloyd and CMA CGM. The shipping companies could choose to permanently halt their services to Cuba or, alternatively, negotiate an agreement with the Trump administration that would allow them to continue operating exclusively with the Cuban private sector. This second option, according to the sources, would align with the Trump administration's strategy to favor private enterprise in Cuba over the state sector.
