Shipping Restrictions Intermediate

Embargo

Also known as: Shipping Embargo, Service Embargo, Freight Embargo

Definition

An embargo in shipping is a restriction that prohibits or limits the transportation of goods. Embargoes can be imposed by governments, carriers, or regulatory bodies and may affect specific destinations, product types, or shipping methods.

Types of Shipping Embargoes

Government Embargoes

  • Trade sanctions - Prohibit commerce with certain countries
  • Product bans - Restrict specific goods (weapons, certain technologies)
  • Retaliatory tariffs - May effectively embargo certain trade

Carrier Embargoes

  • Capacity limits - Temporarily stop accepting shipments during peak periods
  • Weather events - Suspend service to areas affected by disasters
  • Infrastructure issues - Halt shipments when facilities are impacted
  • Service changes - Discontinue routes or services

Regulatory Embargoes

  • Safety concerns - Restrict hazardous materials
  • Health issues - Block potentially contaminated goods
  • Environmental - Limit certain chemicals or materials

Current Embargoed Countries (US)

As of this writing, OFAC maintains comprehensive embargoes on:

  • Cuba
  • Iran
  • North Korea
  • Syria
  • Crimea region

How Embargoes Affect Shippers

  1. Order cancellation - May need to refuse orders to embargoed destinations
  2. Routing changes - Find alternative carriers or paths
  3. Compliance risk - Penalties for violating embargoes can be severe
  4. Planning delays - Carrier embargoes can disrupt schedules

Checking for Embargoes

  • Review carrier service alerts regularly
  • Monitor OFAC and BIS restricted party lists
  • Use shipping software that flags restricted destinations
  • Check country-specific regulations before quoting
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