The distributor for the Africa-Middle East region cites the disappearance of sea freight from Cuba and the rising cost of air freight.

“A surcharge of 6.5% will be applied to all invoices [for Cuban cigars] to partially offset the increased freight expenses,” Phoenicia announced in an email to its clients.

“The current geopolitical situation and the ongoing challenges in Cuba have led most shipping lines to suspend their services to the country,” noted the Cyprus-based group. “As a result, sea freight—on which we have successfully relied for many years—is no longer available.”

“Air freight remains the only viable alternative,” Phoenicia continued in the email sent on June 23. “However, this option presents significant constraints, including limited flight availability and substantially higher transportation costs, which can reach more than 15% of the value of the imported cigars.”

“Given these exceptional circumstances, we find it necessary to pass on a portion of these additional costs,” the distributor explained. “While this is a temporary measure, we have decided not to modify our existing price lists. Instead, a surcharge of 6.5% will be applied to all invoices to partially offset the increased freight expenses. This measure will apply to all future offers and orders of Habanos cigars.”

Phoenicia stated that “this surcharge is temporary and will be removed once conditions improve and sea freight services to Cuba resume.”

Phoenicia TAA Cyprus Ltd is one of the world’s largest distributors of Habanos cigars, covering a vast region that spans from Africa and the Middle East to Southern Europe (Greece, Cyprus, and Turkey).