Middle East Crisis Causes Cargo Pile-Up and Skyrocketing Costs for Zara, Next, Marks & Spencer Suppliers
The escalating conflict in the Middle East has triggered widespread disruption in global fashion supply chains, leaving garment shipments from key South Asian manufacturing hubs stranded and driving up costs for major retailers.
According to manufacturers quoted in a Reuters report, consignments destined for brands such as Zara’s parent company Inditex are piling up at airports in Bangladesh and India. The turmoil has prompted airlines including Emirates, Qatar Airways, and Etihad to cancel numerous flights following airspace closures and the temporary shutdown of operations at Dubai International Airport, a vital transit point for regional cargo.
South Asia—encompassing Bangladesh, India, and Pakistan—serves as a primary production base for fast-fashion labels, churning out high volumes of apparel like T-shirts, dresses, and jeans. Gulf carriers traditionally manage a substantial portion of this air freight. Industry expert Frederic Horst, managing director of Trade and Transport Group in Sydney, told Reuters that over half of Bangladesh’s air cargo and roughly 41% of India’s typically routes through these Gulf hubs, with Emirates and Qatar Airways central to the network.
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Shovon Islam, managing director of Bangladesh’s Sparrow Group—which supplies Inditex, Marks & Spencer, Next, and Primark—described consignments stuck at Dhaka airport. Goods intended for the UK via Dubai have been halted, forcing a scramble for alternatives that are neither straightforward nor economical.
Inditex, which reported 150 suppliers in Bangladesh, 122 in India, and 69 in Pakistan in its 2023 annual report, did not respond to Reuters inquiries about the impact. Freight rates have spiked amid reduced capacity, with Alexander Nathani of Mumbai-based Kira Leder noting that costs for shipping leather jackets from Mumbai to Austria have doubled, while some shipments face indefinite delays.
Retailers including Primark, H&M, and Marks & Spencer informed Reuters that they primarily rely on sea transport for shipments, mitigating some air-related effects. Next did not immediately comment. However, industry voices warn of broader risks. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, highlighted the current air shipment interruptions and expressed concern that any closure of the Strait of Hormuz could extend the crisis to sea freight, potentially inflating costs further and threatening exporters.
As the situation unfolds, South Asian apparel producers face mounting challenges in maintaining timely deliveries to international markets amid this geopolitical strain.