The European shipping companies Hapag-Lloyd and CMA CGM will not be offering any services to and from Cuba until further notice. They are responding to an order from US President Trump. This threatens to deal a serious blow to the island state.
Both shipping giants have announced that all bookings involving Cuban ports will be suspended for the time being. Hapag-Lloyd and CMA CGM referred to an executive order issued by Donald Trump on May 1, which extends the US sanctions against Cuba.
A spokesperson for Hapag-Lloyd confirmed to Reuters that the orders would be suspended “due to compliance risks”. The French shipping company CMA CGM is also monitoring the situation “very closely” and will adapt its business operations to the applicable regulations.
Trump’s order is a further blow for crisis-ridden Cuba after the US oil blockade massively restricted the island’s supply of fuel. The new order extends the sanctions even further. It now extends to “any foreign person” operating in key Cuban economic sectors, including energy, defense, metals and mining, as well as financial services.
Shipments severely restricted
Hapag-Lloyd and CMA CGM, two of the world’s largest shipping companies, account for a significant proportion of the transportation volume to and from Cuba. According to a report by NDR, up to 60% of shipping traffic could be jeopardized by the suspension of services.
Both shipping companies now have several options. They could either permanently suspend services to Cuba, or reach an agreement with the US government whereby they would only supply the Cuban private sector. The latter would be in line with Trump’s strategy of giving privately-run companies an advantage over the state-run sector. Trump is primarily targeting the business conglomerate “Gaesa”, which has links to Cuba’s already sanctioned military.
Relations between the USA and communist Cuba have been restricted by sanctions and embargoes since the 1960s. The economically hard-hit island state is currently struggling with its fuel supply: Its largest supplier was Venezuela, whose oil exports have also been restricted by US sanctions. Since the end of last year, the American military has confiscated several tankers.
