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Hapag-Lloyd and CMA CGM shippers suspend Cuba bookings following US executive order

Separately, CMA 'CGM and Hapag-Lloyd announced that they had suspended all bookings for travel to and from Cuba until further notice. Both cited an executive order of the United States issued on May 1.

CMA CGM announced in an emailed press release that it had suspended its bookings from or to Cuba until further notice, following the U.S. executive order issued on May 1. The company said it would "closely monitor the situation" as well as adapt its operations to comply with applicable regulations.

Hapag-Lloyd's spokesman confirmed that the German company was also suspending Cuban orders due to the compliance risks associated with President Obama's executive order from?May 1.

A request for comment was not immediately responded to by the Cuban government.

Two sources who have direct knowledge of the situation say that the temporary suspension of new orders from two of the largest shipping companies in the world could threaten as much as 60 percent of Cuba's volume of shipping. This would be a serious blow to a nation already on the verge of collapse amid a U.S. blockade of oil which has drained the island of its fuel.

Sources said that the order would have the greatest impact on the shipping of goods out of China. The sources said that Northern Europe and the Mediterranean would also be severely affected, but all shipping to Cuba will be affected.

The Trump executive order of May 1, expanded the existing U.S. trade sanctions against Cuba to include any foreigner operating in "the energy, defense, and related materiel, metals and mines, financial services, security, or other sectors of the Cuban economic system." Reporting by Gus Trompiz and Christoph Steitz; Writing by Mathieu Rosamain; Editing and review by Barbara Lewis and Chris Reese

(source: Reuters)