In the past two weeks, confusion has been rippling through the international shipping world. The status of the Strait of Hormuz, the waterway currently controlled by the Iranian government and a key chokepoint in the war between the U.S. and Iran, has become increasingly muddled. The U.S. government has continued to alternately insist that the war is over or on pause, while Iran has disputed that. Meanwhile, the status of shipping through the strait has changed rapidly. As of Friday, no commercial vessels had passed through the strait for three full days, according to data from S&P Global Intelligence. For importers, information on what is legal and safe when it comes to traversing the waterway is growing murkier by the day, but the long-term impact on fashion is getting clearer. While much of the concern about the Strait of Hormuz has been focused on the lack of oil being shipped through it, that’s not the only cargo being delayed. Apparel and textile hubs like India and Bangladesh produce clothing for global brands like Tommy Hilfiger, Gap, Zara and H&M. Those companies rely on the Strait of Hormuz to ship products out from their manufacturers to valuable markets like the E.U. and the rest of the Middle East. According to the Business and Human Rights Centre, global textile production costs are likely to increase by 10-15% as delays continue. The United Nations Conference on Trade and Development expects shipping costs alone to increase 30-50% in the near future.Continue reading this article…
