Fast fashion garments pile up in South Asia as Iran war grounds planes

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.

More than half of Bangladesh’s air cargo travels via the Gulf, he said, and 41% of India’s, with Emirates and ​Qatar Airways the most important carriers.

Inditex has 150 suppliers in Bangladesh, 122 in India and 69 in Pakistan, according to its 2023 annual report. Its ‌most ⁠recent annual report does not disclose country-specific supplier numbers. The company did not reply to Reuters’ questions about the disruption.

FREIGHT COSTS DOUBLE AS CAPACITY SHRINKS

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 for 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 is made by sea. Next did not immediately reply to Reuters’ questions.

“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, a key ​shipping channel separating Iran from Oman and the UAE, 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.”