Dubai International Airport — one of the world’s busiest aviation hubs — remained closed for several days, forcing airlines such as Emirates, Qatar Airways, and Etihad to cancel numerous flights.
According to Reuters, the disruption is particularly severe for South Asian exporters because Gulf airlines handle a substantial share of the region’s cargo traffic. Frederic Horst, managing director at Trade and Transport Group in Sydney, noted that much of the region’s air freight moves through Gulf hubs.
“More than half of Bangladesh’s air cargo travels via the Gulf,” Horst said, adding that around 41% of India’s air freight also relies on Gulf carriers, with Emirates and Qatar Airways playing a key role.
Inditex, Zara’s parent company, depends heavily on suppliers in South Asia. Its 2023 annual report lists 150 suppliers in Bangladesh, 122 in India, and 69 in Pakistan, although the company’s latest report does not provide updated country-specific figures. Inditex did not respond to Reuters’ requests for comment on the current disruption.
With cargo capacity shrinking, freight costs have also surged. Alexander Nathani, managing partner at Mumbai-based leather garment manufacturer Kira Leder, told Reuters that shipping rates have risen sharply after airlines began cancelling flights.
“Most of the freight capacity is now being absorbed by the airlines that are still operating, so prices are rising,” Nathani said. He added that freight costs for shipping leather jackets from Mumbai to Austria have doubled, while some consignments remain delayed.
“One consignment in Pakistan is still stuck at the factory, and another shipment from Mumbai has been accepted by Swiss Air for Monday — we’re hoping the flight operates as scheduled so everything can move forward.”
Retailers including Primark, H&M, and Marks & Spencer told Reuters that most of their shipments are transported by sea rather than air. Meanwhile, Next did not immediately respond to the news agency’s request for comment.
Industry leaders warn that the situation could worsen if maritime routes are also affected. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, told Reuters that air cargo disruptions are already impacting exporters.
“The suspension of cargo flights due to airspace closures in the Middle East is already disrupting air shipments,” Hatem said. He added that if the Strait of Hormuz — a crucial shipping corridor between Iran and Oman and the UAE — were to close, sea freight costs could surge as well.
“All in all, we are worried,” he said. “We may be looking at another major crisis ahead.”
