Phoenicia Announces Shipping Surcharge for Cuban Cigars

One of the largest distributors of Cuban cigars in the world has announced it is adding a new surcharge for all orders.

On June 23, Phoenicia T.A.A. Cyprus Ltd.—the distributor of Cuban cigars for more than 50 countries throughout Africa, Europe and the Middle East—began adding a 6.5 percent surcharge to all “offers and orders” of Cuban cigars in lieu of raising prices on individual products. The company says that because of massive declines in sea cargo to and from Cuba, it has had to switch from using sea freight to air freight, which has resulted in higher prices.

“However, this option presents significant constraints, including limited flight availability and substantially higher transportation costs, which can reach more than 15 percent of the value of the imported cigars,” reads the email. “Given these exceptional circumstances, we find it necessary to pass on a portion of these additional costs.”

The situation in Cuba has been getting progressively worse since January, when the American government ramped up pressure on the Cuban government by going after its oil suppliers. Since then, most commercial airlines have cut back on services, and the number of ships leaving the island has been severely impacted.

According to the email, the surcharge is a temporary measure and will be removed “once conditions improve and sea freight services to Cuba resume.”

Phoenicia is best known as the distributor of Cuban cigars in the Middle East, though it also handles the importation and distribution for Habanos S.A. products in Cyprus, Greece, Malta, Ukraine, Turkey and all of Africa except for Algeria, Morocco and South Africa.