Will the most popular brands increase the prices of clothes? Deliveries stuck at airports

The global clothing sector is facing serious logistical problems. Shipments of clothes for the world’s largest brands are stuck at airports in Bangladesh and India. The reason is air traffic disruptions related to the conflict in the Middle East, which led to the closure of part of the airspace and significantly increased transport prices.

Deliveries from Asia

South Asia is one of the most important clothing production centers for global retailers. It is in Bangladesh, India and Pakistan that a large part of the clothes that are later sold in stores of brands such as Zara, M&S, Next and Primark are made.

Transport problems have meant that many shipments cannot reach Europe on time. Some of them got stuck at airports, including Dhaka, from where they were to be transported to European countries via Dubai.

The difficulties they face include: logistics companies serving the largest clothing concerns. One of them is Sparrow Group, whose clients include Inditex – the owner of the Zara brand – as well as M&S, Next and Primark.

Industry representatives emphasize that the situation is extremely difficult. Some shipments were stopped at airports as operations at key air hubs were suspended. As a result, companies have to look for alternative transport routes, which, however, turn out to be much more complicated and expensive.

Logistical problems result primarily from the closure of part of the airspace in the Middle East and the cancellation of many connections by large airlines such as Emirates, Qatar Airways and Etihad.

The importance of this region for freight transport is enormous. More than half of air cargo comes from Bangladesh and about 41 percent cargo from India is passing through the Persian Gulf. When traffic in this area is restricted, the entire global supply chain is affected.

The reduced number of available flights is also causing transportation costs to skyrocket. As the availability of cargo space declines, air freight prices are rising to record levels.

Some clothing companies are trying to reduce risk by making more use of sea transport. This solution is used, among others, by: Primark, H&M or M&S. However, this delivery method may also soon encounter difficulties.

Higher costs

Experts indicate that the possible closure of the Strait of Hormuz – one of the most important transport routes in the world – could also increase the costs of maritime transport. This would mean further problems for the clothing industry.

The scale of production connections shows how important the South Asian region is for global brands. According to the 2023 annual report, Inditex cooperates with 150 suppliers in Bangladesh, 122 in India and 69 in Pakistan.

If the current transport crisis continues, consumers may also feel the effects. Delivery delays can lead to clothing shortages in stores, and rising transportation costs can translate into higher clothing prices at retail. The fashion industry is watching the situation with concern and waiting for stabilization in global transport.