South Asia is a garment manufacturing powerhouse, and fast-fashion brands worldwide rely on factories in Bangladesh, India, and Pakistan for a steady stream of new t-shirts, dresses, and jeans.
"Some of my clothing shipments are currently held up 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 fly to the UK via Dubai, but with the suspension of operations at Dubai airport, we are now in a very difficult situation. We are trying to find alternative routes, but none of them are simple or cost-effective," Islam added.
Most Middle Eastern airspace has remained closed since the conflict began last Saturday, forcing the world's busiest airport in Dubai to shut down for several days and leading airlines like Qatar Airways, Emirates, and Etihad to cancel numerous flights.
Much of South Asia relies on Gulf airlines to ship goods, typically on commercial flights with some dedicated cargo planes, according to Frederic Horst, managing director of Trade and Transport Group in Sydney.
More than half of Bangladesh's air cargo and 41% of India's travel through the Gulf, with Emirates and Qatar Airways being the most significant carriers.
Inditex has 150 suppliers in Bangladesh, 122 in India, and 69 in Pakistan, according to its 2023 annual report. The company did not respond to Reuters' questions regarding the disruption.
Alexander Nathani, managing partner of Mumbai-based Kira Leder, which produces leather jackets for Inditex and Austrian retailers Cigno Nero, Fussl, and Wiedner, said freight costs to ship his products from Mumbai to Austria have doubled due to the cancellations.
When asked about the disruption of shipments from South Asia, Primark, H&M, and M&S stated that the majority of their shipments are sent by sea. Next did not immediately respond to Reuters' questions.
"The suspension of cargo flights due to the closure of airspace in the Middle East is already affecting air shipments," said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, adding that if the Strait of Hormuz—a key maritime channel separating Iran from Oman and the United Arab Emirates—remains closed, the cost of sea transport will also increase.
"Ultimately, we are concerned, as we see another major crisis looming."
(Reporting by Ruma Paul in Dhaka, Alessandro Parodi in Gdansk, Helen Reid in Paris; editing by Louise Heavens.)
