CMA CGM and Hapag-Lloyd have currently stopped all bookings to and from Cuba until further notice. The reason given is compliance concerns linked to a new US executive order.
It has been reported that the two carriers confirmed the move on 17 May, following a US executive order issued on 1 May.
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“Following the US Executive Order issued on May 1, CMA CGM has decided to suspend its bookings to or from Cuba until further notice,” CMA CGM said in a statement.
The company added that it was “closely monitoring the situation” and would adapt its operations in line with applicable regulations.
A Hapag-Lloyd spokesperson told Reuters that the German carrier was also suspending Cuba bookings “due to compliance risks associated with the US President’s executive order of 1 May.”
The order, known as Executive Order 14404, establishes a new Cuba-related sanctions programme. According to the US Office of Foreign Assets Control (OFAC), it authorises sanctions against foreign persons involved in specified activities related to Cuba, including those operating in identified sectors of the Cuban economy, acting on behalf of the Cuban government, or providing support to persons blocked under the order.
OFAC said the order broadens US sanctions exposure to include non-Cuban foreign persons providing support to Cuba, as well as foreign financial institutions conducting or facilitating significant transactions involving persons blocked under the order.
Reuters reported, citing two sources with direct knowledge of the situation, that the temporary suspension could affect as much as 60 per cent of Cuba’s shipping traffic by volume.
The sources told Reuters that goods shipped from China would be most affected, while Northern Europe and the Mediterranean would also face significant disruption.
One key issue in the carriers’ decision is reportedly the risk of shipments being linked to Grupo de Administración Empresarial S.A. (GAESA), a Cuban military-linked conglomerate sanctioned by the US.
OFAC guidance published on 7 May said foreign persons, including foreign financial institutions, may face sanctions risk under Executive Order 14404 in relation to certain Cuba-linked transactions, while some wind-down transactions are authorised through 5 June 2026.
Reuters reported that the carriers could either make the suspension permanent or seek an arrangement with the US administration that would allow them to continue serving Cuba’s private sector.