Middle East Conflict Disrupts Global Fashion Supply Chain, Strands Clothing Shipments

Major clothing retailers are facing significant shipping delays as Middle East airspace closures force airlines to cancel flights carrying garments from South Asian factories. Manufacturing companies report doubled freight costs and stranded shipments at airports in Bangladesh and India, with industry leaders warning of a potential supply chain crisis.

Clothing shipments destined for major retailers including Zara’s parent company Inditex are sitting idle at airports across Bangladesh and India as ongoing Middle East conflicts force major airlines like Emirates and Qatar Airways to suspend operations, according to manufacturing industry sources.

The region serves as a global hub for clothing production, with fast fashion companies depending heavily on factories throughout Bangladesh, India and Pakistan to supply their constant demand for new apparel items.

Shovon Islam, who leads the Sparrow Group manufacturing company and works with European brands including Inditex, M&S, Next, and Primark, described the challenging situation his company faces.

“Some of my apparel consignments are currently stuck at Dhaka airport,” Islam explained. “They were supposed to be flown to the UK via Dubai, but with operations at Dubai airport suspended, we are now in a very difficult position. We’re trying to figure out alternative routes, but none of them are simple or cost-effective.”

The closure of Middle Eastern airspace began last Saturday when the conflict started, resulting in the shutdown of Dubai’s airport – the world’s busiest international hub – for multiple days. This has led to widespread flight cancellations across Emirates, Qatar Airways, and Etihad.

According to Frederic Horst, who manages operations at Sydney’s Trade and Transport Group, South Asian exporters depend extensively on Gulf-based carriers for their cargo needs, typically using space on passenger flights along with dedicated freight aircraft.

The impact is substantial, with over half of Bangladesh’s air cargo and 41% of India’s shipments traveling through Gulf routes, making Emirates and Qatar Airways essential carriers for the region.

Inditex maintains extensive supplier networks in the affected region, working with 150 facilities in Bangladesh, 122 in India, and 69 in Pakistan based on company data from 2023. The company has not responded to inquiries about how the transportation disruptions are affecting their operations.

The reduced flight availability has created a sharp spike in shipping costs across the industry.

Alexander Nathani, who partners with Mumbai-based Kira Leder to produce leather jackets for Inditex and Austrian retailers including Cigno Nero, Fussl and Wiedner, reports that transportation expenses from Mumbai to Austria have doubled due to the cancellations.

“The whole freight capacity is being blocked now on the airlines that are flying, so prices are increasing,” Nathani noted. “One consignment in Pakistan is stuck in the factory, and the other consignment from Mumbai is being accepted for Swiss Air on Monday – let’s hope they’re also flying and that it all goes.”

When contacted about the shipping disruptions from South Asia, retailers Primark, H&M and M&S indicated that most of their merchandise travels by ocean freight rather than air transport. Next has not yet provided a response to questions about the situation.

Mohammad Hatem, who heads the Bangladesh Knitwear Manufacturers and Exporters Association, warned that the problems could expand beyond air transport.

“The suspension of cargo flights due to airspace closures in the Middle East is already disrupting air shipments,” Hatem stated, adding concerns about potential closure of the Strait of Hormuz shipping channel between Iran, Oman and the UAE, which could drive up ocean transport costs as well.

“All in all, we are worried – we can see another major crisis ahead.”