Havana announces blackouts, cancels carnival as crisis deepens

[El Presidente]

How long until the whole thing blows? 

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Havana announces blackouts, cancels carnival as crisis deepens 

https://www.euronews.com/2022/07/31/us-cuba-crisis-blackouts

By Reuters  •  Updated: 31/07/2022 - 11:15

 

  

HAVANA – The Cuban capital of Havana will begin electricity blackouts in August, has canceled carnival and is taking other measures as the country’s energy crisis worsens, state media reported on Saturday.

The capital, home to a fifth of the population of 11.2 million and center of economic activity in Cuba, had been spared the daily power outages of four or more hours that the rest of the island has endured for months.

Blackouts have sparked a few small local protests this summer and a year ago in July fueled a day of unprecedented unrest across the country as discontent boiled over.

For now, a schedule of power outages will mean each of Havana’s six municipalities will have its electricity cut every three days during peak mid-day hours, according to the local Communist Party daily, Tribuna de la Habana, which reported on a meeting of local authorities.

The blackouts reflect a deepening economic crisis that began with harsh new U.S. sanctions on the island in 2019 and worsened with the pandemic that gutted tourism, and then Russia’s invasion of Ukraine.

Soaring prices for food, fuel and shipping have exposed import dependence and vulnerabilities such as a decaying infrastructure. The country’s economy declined 10.9% in 2020, recovering just 1.3% last year.

Cubans have withstood more than two years of food and medicine shortages, long lines to purchase scarce goods, high prices and transportation woes. The blackouts have only added to the frustration, leading to an exodus of more than 150,000 Cubans since October to the United States, and more elsewhere.

“This is the moment to show solidarity and contribute so that the rest of Cuba suffers less from the undesirable blackouts,” Havana Communist Party leader Luis Antonio Torres was quoted by Tribuna as stating.

Torres, and others at the meeting insisted they were acting in solidarity with fellow Cubans, not from necessity, and announced other measures such as mass vacations to shutter state-run companies, working from home and a 20% cut in energy allocations for private businesses with high consumption. The cancelled carnival had been due to take place next month.

Jorge Pinon, director of the University of Texas at Austin’s Latin America and Caribbean Energy and Environment Program, said offered a different assessment from Torres. He said the entire power grid was near collapse after recent fires in two of 20 already obsolete plants, with others constantly breaking down.

“When you keep running the equipment past its capital maintenance schedule it falls into a downward spiral with no short term solution,” he told Reuters.

“The announced scheduled blackouts are not in solidarity but rather a necessity to avoid a possible total collapse of the system,” Pinon said.

[NSXCIGAR]

I guess they won't be able to charge those electric scooters. 

I wonder if power will be out at Diaz-Canel's mansion. You know, to show solidarity. 

[Ryan]

After last summer, they know well enough to try to keep enough power on for air conditioners and fans to work at night in Havana in the hottest part of the summer. Hot nights with no power will have people in the streets, then the next thing is banging pots and pans and slogans, and then....who knows. Well other than internet being switched off, who knows. Though most Havana residents have wised up to VPNs by now, and VPNs often worked last time. It's hard to know how it will go. I know many people have been scared by the prison sentences handed out recently to last years protestors. 5 years for holding up a sign, or just recording video. 

At the same time, I'm hearing more and more stories of the regime selling off hotels and real estate recently. More big landmark hotels being built right now in Havana, with still no tourists. It's sounding more like an exit/pension plan. 

[Islandboy]

I’ve noticed an uptick in posts of beetle damage with newly received boxes of Habanos on other sites lately, wondering if freezing all cigar exports is no longer a thing due to the energy crisis.

[B44]

24 minutes ago, Islandboy said:

I’ve noticed an uptick in posts of beetle damage with newly received boxes of Habanos on other sites lately, wondering if freezing all cigar exports is no longer a thing due to the energy crisis.

This. It’s unbelievable how many stories seem to be popping up recently. I wonder if a batch slipped through or if they’re even able to maintain this step in the process with such poor infrastructure.   

[Ryan]

I know it happened in a lot of retailers in Europe. At least in the warmer parts. Shops closed during Covid. They turned the lights, and the cooling, off. Beetles could take hold.

I saw more evidence of beetle damage in Spain last month in various shops than I had ever seen there. I'm not saying that practices haven't slipped in Cuba too, they almost certainly have, but there are probably other factors.

Cuba has bigger problems. It's hard to ask someone to care about refrigerating export cigars when they're not sure what they're going to feed their kid tomorrow.   

[MossybackR]

10 minutes ago, B44 said:

I wonder if a batch slipped through or if they’re even able to maintain this step in the process with such poor infrastructure.   

I hope it’s the former. Hard to believe that HSA would purposely let this happen.

[B44]

6 minutes ago, Ryan said:

I know it happened in a lot of retailers in Europe. At least in the warmer parts. Shops closed during Covid. They turned the lights, and the cooling, off. Beetles could take hold.

I saw more evidence of beetle damage in Spain last month in various shops than I had ever seen there. I'm not saying that practices haven't slipped in Cuba too, they almost certainly have, but there are probably other factors.

Cuba has bigger problems. It's hard to ask someone to care about refrigerating export cigars when they're not sure what they're going to feed their kid tomorrow.   

Your last paragraph is exactly what was running through my mind. I’ve been to quite a few factories in China over the years. The second the necessities are neglected, production is neglected. They go hand in hand, and couple that now with perhaps the inability to actually run the cooling plants. I wonder if we should be taking any precautions on our end. 

[El Presidente]

2 minutes ago, B44 said:

Your last paragraph is exactly what was running through my mind. I’ve been to quite a few factories in China over the years. The second the necessities are neglected, production is neglected. They go hand in hand, and couple that now with perhaps the inability to actually run the cooling plants. I wonder if we should be taking any precautions on our end. 

I will ask our logistics packing teams if they have seen any uptick. 

[B44]

7 minutes ago, El Presidente said:

I will ask our logistics packing teams if they have seen any uptick. 

Much appreciated. I don’t think I’ve seen any from your team, seems to be with 2 other vendors. In any case, we’ll heed your advice as always. Thanks Prez

 

Edit: I should clarify, that I am not one of the affected parties. 

Edited July 31, 2022 by B44

[El Presidente]

1 minute ago, B44 said:

Much appreciated. I don’t think I’ve seen any from your team, seems to be with 2 other vendors. In any case, we’ll heed your advice as always. Thanks Prez

Seeing one hole in a cigar isn't uncommon.  It happens before they hit the freezer. They are easy to miss!

I should have an answer for you later today. 

 

[B44]

4 minutes ago, El Presidente said:

Seeing one hole in a cigar isn't uncommon.  It happens before they hit the freezer. They are easy to miss!

I should have an answer for you later today. 

 

Thanks as always. The 21/22 stash are too good to say no to at this point. 

[El Presidente]

Spoke to Tom (runs logistics). 

Occurence is roughly 2 boxes affected a month. No live beetles. 

Now that is up slightly but we are talking 2 in a couple of thousand boxes. 

HOWEVER 

A vendor can get into trouble when:

• They introduce unfrozen NC stock into the same storage facility.
• They introduce Cuba direct (purchase) stock into the storage facility
• They introduce unfrozen customs/farmies into the facitlity
• They have a private client  locker system attached to the general storage facility. 

It only takes one live beetle to compromise a storage faciltiy. 

[SCgarman]

1 hour ago, NSXCIGAR said:

I guess they won't be able to charge those electric scooters. 

I wonder if power will be out at Diaz-Canel's mansion. You know, to show solidarity. 

You can forget the mastercases being frozen in that huge warehouse sized freezer. It takes a good bit of juice to power a huge walk in freezer. Sounds really bad. Guess the gov't won't be trying to force the population to drive Teslas!

[Nevrknow]

Makes me glad I have a “couple” of boxes already. 😁

And from where they came, I’m not nervous. I would tell you from where but you’ve probably never heard of them. 😂

[B44]

43 minutes ago, El Presidente said:

Spoke to Tom (runs logistics). 

Occurence is roughly 2 boxes affected a month. No live beetles. 

Now that is up slightly but we are talking 2 in a couple of thousand boxes. 

HOWEVER 

A vendor can get into trouble when:

• They introduce unfrozen NC stock into the same storage facility.
• They introduce Cuba direct (purchase) stock into the storage facility
• They introduce unfrozen customs/farmies into the facitlity
• They have a private client  locker system attached to the general storage facility. 

It only takes one live beetle to compromise a storage faciltiy. 

Tom sounds like a good dude. Spreadsheets for beetles holes and the like is something I can get behind. Please thank him for us for the due diligence.  

[NSXCIGAR]

I would estimate at least a third of all 2017 boxes or older I came across in Cuba in Apr and June had significant beetle damage. Of those older than 2017 the beetle rate went up to over 50%. 

Check everything bought in Cuba. Do not leave the shop without inspecting every cigar in every box. Freeze everything at the first available opportunity. 

[Hammer Smokin']

it's just a cuban cigar price correction. 

they should have been the new price all along

[Corylax18]

20 hours ago, NSXCIGAR said:

I would estimate at least a third of all 2017 boxes or older I came across in Cuba in Apr and June had significant beetle damage. Of those older than 2017 the beetle rate went up to over 50%. 

Check everything bought in Cuba. Do not leave the shop without inspecting every cigar in every box. Freeze everything at the first available opportunity. 

I might have been lucky, but I didnt see anything with Beetle damage in March. I would say I only picked through about 20 boxes though, and kept only 6 of those. The dates where 15, a couple 17s, a couple 20s and a 21. Ugly wrappers, poor construction and some mold where still the biggest faults for me. 

For the first time in 7 trips, I didnt open/look at a single box of RP cigars last week. It feels sad/weird to type, but I didn't have any desire to. I still purchased several hundred cigars, but none in bands/boxes. Im just not interested anymore. 

 

On 8/1/2022 at 7:42 AM, El Presidente said:

How long until the whole thing blows? 

I dont know. I dont understand how its lasted this long. The level of pain is far greater right now than it has been in at least 25 years. Its insane right now in the far reaches of the country. No power, no running water, empty/shuttered ration stores. In much of the country people are focused on survival right now. 

It obviously hasn't gotten that bad in Havana yet, but its going that way.