Skip
Container ship carrying multicoloured freight containers at sea

Middle East conflict and global textile supply chains

9 Mar 2026

Manufacturers and brands face rising freight and polyester costs, longer transit times and regulatory pressures. Challenges we examine and address below.

Reading time: 2 minutes

The disruption of major shipping routes following the expansion of conflict in the Middle East is accelerating structural changes across the textile industry. In our sector where yarn typically passes through several countries before becoming a finished garment or home textile product, extended transit times and higher freight rates quickly translate into rising production costs, with some routes lengthening by roughly 10–14 days as carriers reroute around high risk corridors.1

The impact is particularly severe for low margin products in both apparel and home textiles. Industry reporting has shown freight costs surging sharply for exporters, with some regions experiencing increases of up to 400% compared with pre crisis levels, putting pressure on working capital and transport budgets.2

Rising crude oil and energy costs also add pressure on petrochemical feedstocks, which feed directly into fibres such as polyester, further inflating raw material costs and compressing margins.3

These pressures are challenging the fast sourcing model that has dominated textile supply chains for decades. Delays are forcing brands and retailers to rely on costly air freight or accept markdowns when seasonal products arrive late – both of which undermine already fragile margins.

Regulatory complexity is also rising. Trade controls and stricter origin checks on exports from key Southeast Asian production hubs are increasing documentation and compliance requirements, while containers transiting high risk maritime zones are more frequently inspected, adding time and cost penalties to port operations.

Hands holding freshly harvested raw cotton in a processing facility
Textile materials affected by rising costs and supply bottlenecks

As a result, sourcing strategies are beginning to shift. Nearshoring is gaining traction, with production hubs in Turkey, Egypt and Eastern Europe drawing increased interest due to shorter transit times and greater reliability compared with extended sea routes around Africa.4 

In today’s volatile trade environment, relying solely on low production costs may limit flexibility. Companies that enhance regional logistics capabilities, shorten lead times, and offer differentiated, higher‑value products, such as technical textiles and recycled fibres, can strengthen margins and improve resilience in a disrupted global market. 

At the same time, having access to multiple suppliers and alternative transport options can provide greater adaptability when primary shipping routes face delays, helping companies respond more smoothly to unexpected situations.

You might also be interested in: