CMA CGM and Hapag-Lloyd both stated on May 17 that they have suspended all booking operations to and from Cuba until further notice. Both companies cited an Executive Order issued by the United States on May 1. This move represents the latest blow to the crisis-ridden island nation's economy.

According to a White House announcement released on May 1, President Trump signed an Executive Order that day to intensify sanctions on Cuba on the grounds of "threatening U.S. national security and foreign policy." The order subjects to sanctions "any foreign person" operating within the energy, defense and related materials, metals and mining, financial services, or security sectors of the Cuban economy, as well as any other sector of the Cuban economy.

Two sources familiar with the matter revealed that the suspension of new bookings by the two liner giants could impact up to 60% of Cuba's seaborne freight volumes. This is another severe blow to an already struggling Cuba, where the U.S. oil blockade has already severely crippled the island's fuel supply.

CMA CGM stated in an emailed declaration: "In accordance with the Executive Order issued by the United States on May 1, CMA CGM has decided to suspend booking operations to and from Cuba until further notice." The company added that it is "monitoring the situation closely" and will adjust its operations in line with applicable regulations.

A spokesperson for Hapag-Lloyd stated that the company similarly suspended Cuba bookings due to "compliance risks associated with the U.S. President's Executive Order of May 1."

Sources indicated that goods transported from China will be the most heavily affected. They added that Northern Europe and the Mediterranean region will also see significant disruption, though all global shipping routes serving Cuba will be impacted.

A key consideration behind the two companies' suspension, according to reports, is to sever any shipping links with Cuba involving GAESA, a sprawling conglomerate linked to the Cuban military that is already under heavy U.S. sanctions.

The shipping companies' decision will have a devastating impact on Cuba's imports. The country is already plagued by shortages and rationing, and imports are crucial to keeping goods on its shelves.

Sources indicated that Hapag-Lloyd and CMA CGM currently have several options under consideration. The companies could choose to permanently halt shipping services to Cuba, or alternatively, they could reach an agreement with the Trump administration to be authorized to continue transporting goods exclusively to Cuba's private sector. One source noted that the latter option aligns with the Trump administration's strategy of bolstering Cuba's private enterprises, giving them an advantage over state-owned entities.