How major fast fashion brands are handling the Middle East logistics crisis

Global fashion supply chains are currently navigating a period of profound instability as escalating conflict in the Middle East severely disrupts the flow of goods from South Asian manufacturing hubs to European high streets.

As of March 2026, the closure of vital airspace and the suspension of operations at major transit hubs like Dubai have created a major problem for brands retailers. While maritime routes have long been under pressure due to Red Sea diversions, the sudden paralysis of air freight corridors has left high-value seasonal consignments stranded, forcing industry giants to choose between exorbitant costs and empty shelves.

Stranded stock

For fast-fashion giants like Inditex (Zara) and Primark, the crisis has manifested as a literal pile-up of inventory. Manufacturers in Bangladesh and India report that thousands of garments intended for spring/summer collections are currently languishing at airports.

Shovon Islam, managing director of the Sparrow Group — a primary supplier for Inditex, Next and Primark —confirmed the severity of the bottleneck: “Some of my apparel consignments are currently stuck at Dhaka airport... 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,” said Islam in a recent statement according to Reuters.

Seasonal shift amid delayed campaigns

The logistical deadlock is not merely a backend issue; it is actively reshaping the retail calendar. H&M, the world’s second-largest fashion retailer, has already moved to adjust its marketing to match its depleted inventory. CEO Daniel Erver noted that the company has been forced to postpone major campaign launches to synchronise with delayed arrivals.

In a recent interview, Erver explained the tactical retreat: “We have made some short-term adaptations on the starting date and the launch date of campaigns,” Erver told Reuters, adding that while they aim for minor customer impact, delays could reach “around two weeks in some markets.”

Freight costs reach Covid-era peaks

The financial toll of these disruptions is staggering. With 16 – 18 percent of global air cargo capacity removed almost overnight due to airspace closures, manufacturers are seeing freight prices double or even triple.

Alexander Nathani, a partner at Mumbai-based Inditex supplier Kira Leder, reported a dramatic surge in overheads: “The whole freight capacity is being blocked now on the airlines that are flying, so prices are increasing,” Nathani stated, noting that transport expenses from Mumbai to Europe have effectively doubled as carriers struggle to find alternative routes.

Maritime fragility and the “Hormuz Factor”

While retailers like Primark and H&M have historically relied on sea freight to mitigate costs, the maritime sector offers no sanctuary. The redirection of ships around the Cape of Good Hope due to the blockage of the Strait of Hormuz has already added 10 to 15 days to transit times.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), warned that the situation could deteriorate if the Strait of Hormuz is compromised. “The suspension of cargo flights... is already disrupting air shipments. All in all, we are worried – we can see another major crisis ahead,” said Hatem according to the Times of India.

Strategic resilience and careful expansion

In response, the industry is pivoting toward adaptive networks over traditional lean supply chains. Many retailers are now near-shoring production to Turkey or North Africa to bypass the Middle East altogether. However, for the immediate season, the focus remains on damage limitation.

Expansion plans may be on hold for the time being. While Inditex just entered Iraq, Primark is set to open three stores in Dubai ​in spring, as well as stores in Bahrain and Qatar by the end of the year. A spokesperson for Primark parent company Associated British Foods remarked on the planned expansion into the Middle East. “Primark is set to open its first store in Dubai at the end of March. Clearly this is a fast-moving situation which we are monitoring closely,” stated the spokesperson according to the Economic Times.

For fashion insiders, the message is clear: The era of predictable, low-cost global logistics is coming to an end, replaced by a mandate for agility and a tolerance for significantly higher landed costs.