Shipments of garments for Zara owner Inditex and other major clothing retailers are stranded at airports in Bangladesh and India, according to three manufacturers, as the conflict in the Middle East forces airlines such as Emirates and Qatar Airways to cancel flights.
South Asia is a clothes manufacturing powerhouse, and fast fashion brands around the world rely on factories in Bangladesh, India and Pakistan for a constant stream of new T-shirts, dresses and jeans.
“Some of my apparel consignments are currently stuck at Dhaka airport,” said Shovon Islam, managing director of manufacturer Sparrow Group, whose European clients include Inditex, M&S, Next and Primark.
“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,” Islam added.
Most airspace in the Middle East is still closed since the conflict began last Saturday, forcing the world’s busiest airport, Dubai, to shut down for several days, with airlines including Qatar Airways, Emirates and Etihad cancelling many flights.
Much of South Asia relies on Gulf airlines to send cargo, usually in commercial flights with some cargo-only aircraft, said Frederic Horst, managing director at Trade and Transport Group in Sydney.
As air capacity has reduced sharply, prices have shot up.
Alexander Nathani, managing partner at Mumbai-based Kira Leder, which produces leather jackets for Inditex and Austrian retailers Cigno Nero, Fussl and Wiedner, said freight charges to fly his products from Mumbai to Austria have doubled because of the cancellations.
“The whole freight capacity is being blocked now on the airlines that are flying, so prices are increasing,” Nathani said.
“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.”
Asked about the disruption to shipments from South Asia, Primark, H&M and M&S said the majority of their shipments are made by sea.
“The suspension of cargo flights due to airspace closures in the Middle East is already disrupting air shipments,” said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, adding that if the Strait of Hormuz remains closed, it will drive up the cost of sea transport, too.
“All in all, we are worried – we can see another major crisis ahead.” — Reuters
