How major fast fashion brands are tackling the logistics crisis in the Middle East

The fashion industry’s global supply chains are currently experiencing a period of profound instability. The escalating conflict in the Middle East is significantly disrupting the flow of goods from production centers in South Asia to shopping streets in Europe.

Since the beginning of March 2026, the closure of key airspace and the cessation of operations at major hubs such as Dubai have been a major problem for brands and retailers. Sea routes have long been under pressure due to diversions in the Red Sea. Now the sudden paralysis of air freight corridors has left high-value seasonal deliveries stranded. Even the largest in the industry are forced to choose between exorbitant costs and empty shelves.

Stranded stocks

For fast fashion giants such as the Spanish group Inditex, which owns the main brand Zara, and the Irish discounter Primark, the crisis is manifesting itself in a literal accumulation of inventory. Manufacturing companies in Bangladesh and India report that thousands of garments for their spring/summer collections are currently stuck in airports.

Shovon Islam, managing director of Sparrow Group, a major supplier to Inditex, Next and Primark, confirmed the extent of the shortage. “Some of my clothing shipments are currently stuck at Dhaka airport. They were supposed to be flown to the UK via Dubai, but since operations at Dubai airport have stopped, we are now in a very difficult situation,” Islam told Reuters.

Seasonal shift due to delayed campaigns

The logistical standstill is not a subtle problem, but is actively reshaping the seasonal calendar. Swedish group H&M has already adjusted its marketing to adapt to depleted stocks. Chief Executive Officer (CEO) Daniel Erver told Reuters that the company was forced to postpone major campaign launches to synchronize with delayed deliveries. He added that while they are aiming for a low impact on customers, delays in some markets could be “around two weeks.”

Freight costs are reaching highs like they were during Covid times

The financial impact of these disruptions is enormous. With 16 to 18 percent of global air freight capacity lost almost overnight due to airspace closures, manufacturers are faced with freight prices doubling or even tripling.

Alexander Nathani, a partner at Mumbai-based Inditex supplier Kira Leder, reported a dramatic increase in overhead costs. “All cargo capacity is now blocked on the active airlines, so prices are going up,” Nathani explained. He noted that transportation costs from Mumbai to Europe have virtually doubled as trucking companies struggle to find alternative routes.

Fragility of maritime transport and the “Hormuz factor”

Although companies such as Primark and H&M have traditionally relied on sea freight to reduce costs, the maritime sector offers no refuge. The diversion of ships around the Cape of Good Hope due to the blockade of the Strait of Hormuz has already increased transit times by 10 to 15 days.

Mohammad Hatem, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), warned that the situation could worsen if the Strait of Hormuz is affected. “The suspension of cargo flights is already disrupting air cargo shipments. Overall, we are worried – we see another major crisis coming,” he told Times of India.

Strategic resilience and cautious expansion

In response, the industry is pivoting to adaptable networks instead of traditional lean supply chains. Many brands and retailers are now moving production to Turkey or North Africa to avoid the Middle East altogether. For the immediate season, however, the focus remains on damage control.

Expansion plans could be on hold for now. While Inditex has just expanded into Iraq, Primark plans to open three stores in Dubai in the spring and more in Bahrain and Qatar by the end of the year. Primark parent company Associated British Foods commented on its planned expansion into the Middle East. “Primark will open its first store in Dubai at the end of March. This is clearly a rapidly evolving situation that we are monitoring closely,” a spokesperson said, according to the Economic Times.

For industry insiders, the message is clear: the era of predictable, cost-effective global logistics is coming to an end. It is being replaced by the need for agility and the tolerance for significantly higher overall costs.