Photo courtesy of Reuters
BUSINESS

Middle East conflict delays South Asia garments

Mico Virata

Garment exports from South Asia are facing delays as air cargo routes through the Middle East remain disrupted, leaving shipments for major global fashion brands stranded at airports in Bangladesh and India.

Manufacturers said consignments bound for European retailers, including those supplying Zara owner Inditex, have been stuck at airports after several Gulf-based airlines suspended flights due to the ongoing conflict in the region.

"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.

Airspace closures across much of the Middle East since last weekend forced Dubai International Airport, one of the world’s busiest aviation hubs, to suspend operations for several days. Airlines such as Emirates, Qatar Airways and Etihad have cancelled numerous flights.

The disruption is particularly significant for South Asia’s garment industry, a major supplier of clothing to fast-fashion retailers worldwide. Factories in Bangladesh, India and Pakistan rely heavily on Gulf carriers to move air cargo.

Frederic Horst, managing director of Trade and Transport Group in Sydney, said more than half of Bangladesh’s air cargo and about 41 percent of India’s shipments typically pass through Gulf airlines, with Emirates and Qatar Airways among the key carriers.

With cargo space shrinking, shipping costs have surged.

Alexander Nathani, managing partner at Mumbai-based Kira Leder, said freight charges for sending leather jackets from Mumbai to Austria have doubled as airlines reduce capacity.

"The whole freight capacity is being blocked now on the airlines that are flying, so prices are increasing," Nathani said.

Industry groups warn that the disruption could widen if maritime routes are also affected. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that continued instability around the Strait of Hormuz — a key shipping route between Iran, Oman and the United Arab Emirates — could also drive up sea freight costs.