The ongoing conflict in the Middle East has severely impacted the global fast fashion supply chain, leaving shipments of garments destined for major international retailers stranded at airports in South Asia. Factories in Bangladesh, India, and Pakistan, which form the backbone of the world’s apparel manufacturing industry, are facing unprecedented challenges as airlines such as Emirates and Qatar Airways suspend flights due to closed airspace.
South Asia has long been recognized as a critical hub for clothing production, supplying a continuous flow of garments including T-shirts, dresses, and jeans to fast fashion brands worldwide. However, the recent suspension of flights through key Middle Eastern transit points has disrupted this vital supply chain. Shovon Islam, managing director of Sparrow Group, a prominent manufacturer serving European clients like Inditex, Marks & Spencer, Next, and Primark, revealed that several consignments are currently stuck at Dhaka airport. These shipments were originally scheduled to be transported to the United Kingdom via Dubai, but with Dubai airport operations halted, exporters are scrambling to find alternative routes that are often complicated and expensive.
The closure of much of the Middle Eastern airspace began last Saturday following the outbreak of hostilities, forcing Dubai International Airport—the busiest airport in the region—to shut down for several days. This has led to widespread cancellations of flights by major Gulf carriers including Qatar Airways, Emirates, and Etihad. The disruption is particularly significant because a large portion of South Asia’s air cargo depends on these Gulf airlines. Frederic Horst, managing director of the Trade and Transport Group based in Sydney, highlighted that over half of Bangladesh’s air cargo and 41% of India’s shipments transit through Gulf carriers, underscoring the critical role these airlines play in global freight movement.
Inditex, the parent company of Zara, maintains a substantial supplier network across South Asia, with 150 suppliers in Bangladesh, 122 in India, and 69 in Pakistan as per its 2023 annual report. Despite the scale of this network, the company has not publicly commented on the current disruptions. Meanwhile, the reduction in available air freight capacity has caused shipping costs to skyrocket. Alexander Nathani, managing partner at Mumbai-based Kira Leder, which produces leather jackets for Inditex and several Austrian retailers, noted that freight charges from Mumbai to Austria have doubled amid the cancellations. He explained that the limited cargo space on operating airlines is being rapidly filled, driving prices upward and complicating logistics further.
Some consignments remain stuck at factories or airports, awaiting confirmation of available flights. Nathani expressed cautious optimism about a shipment scheduled with Swiss Air, hoping that the airline will be operational to facilitate delivery. Retailers such as Primark, H&M, and Marks & Spencer have indicated that most of their shipments are transported by sea, which may mitigate some of the air freight challenges. However, the situation remains precarious, especially if the Strait of Hormuz—a vital maritime route between Iran, Oman, and the UAE—remains closed. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, warned that prolonged closure of this key shipping channel could escalate sea freight costs, compounding the difficulties faced by exporters.
In summary, the conflict in the Middle East has triggered a ripple effect across the global apparel supply chain, particularly impacting South Asian garment manufacturers. With airspace closures disrupting cargo flights and potential threats to maritime routes, exporters and retailers alike are bracing for a challenging period ahead. The combination of delayed shipments and rising freight costs threatens to strain an already complex industry, raising concerns about the availability and pricing of fast fashion products in international markets.