DHAKA, Bangladesh: Garment shipments bound for major global retailers, including Zara owner Inditex, are piling up at airports in Bangladesh and India after Middle East airspace closures forced airlines to cancel flights, manufacturers said.

The disruption comes as the conflict in the Middle East grounds key Gulf carriers, including Emirates and Qatar Airways, which handle a large share of cargo moving from South Asia to Europe and other markets.

South Asia is a major hub for global clothing production, supplying fast fashion brands with a steady stream of T-shirts, dresses, and jeans from factories in Bangladesh, India, and Pakistan.

"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.

Most Middle Eastern airspace has remained closed since the conflict began last Saturday, forcing Dubai — the world's busiest international airport — to shut for several days. Airlines, including Qatar Airways, Emirates, and Etihad, have cancelled large numbers of flights.

Much of South Asia's garment cargo normally travels through Gulf hubs before heading to Europe and other markets.

Frederic Horst, managing director at Trade and Transport Group in Sydney, said the region relies heavily on Gulf airlines to move goods, often using cargo space in commercial passenger flights as well as dedicated freighter aircraft.

More than half of Bangladesh's air cargo moves through Gulf hubs, Horst said, along with about 41 percent of India's shipments, with Emirates and Qatar Airways among the most important carriers.

According to its 2023 annual report, Inditex had 150 suppliers in Bangladesh, 122 in India, and 69 in Pakistan. Its latest annual report does not provide country-by-country supplier figures. The company did not respond to Reuters' questions about the disruption.

Freight costs surge as flights shrink.

With fewer cargo flights operating, air freight shipping costs have risen sharply.

Alexander Nathani, managing partner at Mumbai-based Kira Leder, which produces leather jackets for Inditex and Austrian retailers Cigno Nero, Fussl, and Wiedner, said freight charges for shipments from Mumbai to Austria have doubled.

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

"One consignment in Pakistan is stuck in the factory, and the other consignment from Mumbai is being accepted for Swiss Air on Monday - let's hope they're also flying and that it all goes."

Some retailers said the immediate impact may be limited because much of their clothing is transported by sea rather than air.

When asked about disruptions affecting South Asia, Primark, H&M, and M&S said most of their shipments travel by sea. British retailer Next did not immediately respond to Reuters' questions.

Industry groups in Bangladesh warned that the disruption could worsen if the conflict spreads further to shipping routes.

"The suspension of cargo flights due to airspace closures in the Middle East is already disrupting air shipments," said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association.

He said there were also concerns about the potential impact on maritime shipping if the Strait of Hormuz, the narrow waterway between Iran and Oman and the United Arab Emirates, remains closed.

The strait is a key global trade route for oil and cargo shipping. "If the Strait of Hormuz remains closed, it will drive up the cost of sea transport, too," Hatem said. "All in all, we are worried, we can see another major crisis ahead."