Global shipping giants suspend Cuba bookings after US executive order

Major shipping companies CMA CGM and Hapag-Lloyd have suspended all bookings to and from Cuba, citing compliance risks linked to a new U.S. executive order, in a move that could significantly disrupt the island’s already strained economy.

The decision, announced on May 17, marks a major setback for Cuba’s trade flows, with industry sources estimating that up to 60% of the country’s shipping traffic by volume could be affected, Reuters reports.

“Following the U.S. Executive Order issued on May 1, CMA CGM has decided to suspend its bookings to or from Cuba until further notice,” the French company said in an emailed statement. It added it was “closely monitoring the situation” and would adapt its operations in compliance with applicable regulations.

A Hapag-Lloyd spokesman said the German company was similarly suspending Cuban orders "due to compliance risks associated with the U.S. president's executive order of May 1."

The executive order issued by U.S. President Donald Trump on May 1 broadened sanctions on trade with Cuba, extending restrictions to “any foreign person” operating in several key sectors, including energy, defense, metals and mining, financial services, and security, as well as other areas of the Cuban economy.

Industry sources said shipping from China would be most affected, with significant disruptions also expected in Northern Europe and the Mediterranean, though global trade routes to Cuba are likely to be impacted overall.

The move is also expected to complicate logistics tied to Cuba’s state-linked conglomerates, including GAESA, which has been heavily sanctioned by the United States and is closely tied to the country’s military.

The suspension follows earlier fallout from the same executive order, which reportedly prompted Canadian miner Sherritt International to withdraw from its nickel and cobalt operations in Cuba after decades of investment.

The shipping companies’ decision, first reported by online outlet CiberCuba, could further strain Cuba’s ability to import essential goods amid widespread shortages and rationing.

Sources familiar with the matter said the companies are weighing longer-term options, including a permanent exit from Cuban routes or a potential arrangement allowing limited trade with Cuba’s private sector under U.S. compliance frameworks.

By Sabina Mammadli