The transportation crisis affecting Cuba is now having repercussions beyond its borders. One of the leading cigar distributors globally has announced a 6.5% surcharge on all orders due to increased costs associated with exporting Cuban cigars.
This decision was made by Phoenicia T.A.A. Cyprus Ltd., which distributes Habanos S.A. products across more than 50 countries in Europe, Africa, and the Middle East, as reported by the specialized publication Halfwheel.
In a statement to its clients, Phoenicia explained that the reduction in sea traffic with Cuba has forced them to rely on air transport, a significantly more expensive and limited-capacity alternative.
"This option presents significant limitations, such as limited flight availability and substantially higher transportation costs, which can exceed 15% of the value of imported cigars. Given these exceptional circumstances, we find it necessary to pass on part of these additional costs," the company stated.
The surcharge took effect on June 23 and will be applied separately to all offers and orders, rather than being included in the price of each product. Phoenicia assured that this is a temporary measure and will be lifted once maritime services to the island are restored.
Impact of Cuban Logistics Deterioration
The decision highlights the worsening of Cuban logistics, exacerbated in 2026 by the reduction of both maritime and air connections with the country.
In maritime transport, international shipping companies like Hapag-Lloyd and CMA CGM have suspended their operations with Cuba. Meanwhile, U.S. restrictions on companies linked to GAESA, the business conglomerate controlled by the Armed Forces, have also impacted the movement of goods to the island.
Challenges in Air Transport
The air transport crisis is compounding the issue. This year, more than a dozen airlines have suspended flights to Cuba, citing factors such as a shortage of aviation fuel, which has significantly reduced available cargo capacity.
These logistical challenges come at a particularly delicate time for Cuba's tobacco industry. In March, Canada reported shortages of cigars, and the International Habano Festival 2026 was canceled.
Despite this scenario, Habanos S.A. remains one of the Cuban regime's primary sources of foreign currency revenue. In 2024, the company achieved record sales of $827 million, with Europe being its most important market, accounting for 55% of global revenue.
Phoenicia is the exclusive distributor of Habanos S.A. in Cyprus, Greece, Malta, Turkey, Ukraine, and much of the African continent. Their decision marks one of the first visible effects of the Cuban logistics crisis on the international premium tobacco distribution chain and demonstrates that the difficulties in transporting goods from the island are already impacting international markets.
Understanding the Cuban Cigar Distribution Crisis
What prompted Phoenicia T.A.A. Cyprus Ltd. to add a surcharge on cigar orders?
Phoenicia T.A.A. Cyprus Ltd. added a surcharge on cigar orders due to increased costs from relying on air transport. The reduction in sea traffic with Cuba has compelled them to use air transport, which is more expensive and has limited capacity.
How does the transportation crisis affect Cuba's logistics?
The transportation crisis has deteriorated Cuba's logistics, reducing both maritime and air connections. International shipping companies have suspended operations, and U.S. restrictions have further hindered the movement of goods to the island.
What is the impact on the Cuban tobacco industry?
The challenges in logistics are occurring at a sensitive time for Cuba's tobacco industry, which has already faced shortages in Canada and the cancellation of the International Habano Festival 2026. Despite these issues, Habanos S.A. remains a significant source of revenue for Cuba.