Zara’s parent company Inditex has increased its reliance on air freight to transport clothing from factories in India to its logistics hub in Spain, shows recent trade data. Although this move will allow the company to bypass shipping delays, it is likely to impact the company’s commitment to reducing carbon emissions, as air transport generates far more emissions than maritime shipping.
As per unpublished data analysed by Reuters, alongside information from trade data provider Import Genius, in the 12 months leading up to the end of Aug’24, Inditex’s air shipments from India increased by 37 per cent to 3,865 from the previous year. A significant portion of these shipments —3,352— occurred after Jan’24, following a spike in attacks on container ships in the Red Sea. An analysis of this customs data by Swiss NGO Public Eye reveals, air freight accounted for 70 per cent of Inditex’s shipments from India in the first eight months of this year, up from 44 per cent in the same period last year.
According to Inditex, sea freight remains the primary mode for most Asian imports, but exceptional circumstances, like the Red Sea disruptions, necessitate alternative logistics. Inditex sources roughly half of its supplies from countries close to Europe, including Morocco, Portugal, Spain, and Turkey, but key suppliers remain in Asia, particularly Bangladesh, China, Pakistan, and India.
Many of Inditex’s air shipments from India arrive in Zaragoza, a crucial logistics hub for Zara. The airport, where Zara accounts for about two-thirds of cargo activity, saw a 39 per cent rise in cargo movements between Jan-Sep’24 compared to the previous year. As per figures from the Spanish Trade Agency, the value of fashion goods imported by air to Spain increased by 28 per cent over the past year.
This led to a 37 per cent rise in air transport-related emissions during the year ending Jan 31, 2024, as per Reuters. Transport now constitutes 12.1 per cent of Inditex’s total emissions, up from 8.4 per cent in 2022, although the company notes that changes in its reporting methodology make direct comparisons difficult. Inditex has set a goal to cut its Scope 3 emissions—which cover transportation—by 50 per cent by 2030, using 2018 as a baseline.
Inditex is committed to reducing emissions through various initiatives, including the use of alternative fuels, optimising transport routes, and improving shipment efficiency. Nevertheless, the recent spike in transport emissions could require the company to make deeper cuts in other areas of its supply chain, such as the production and processing of materials, to meet its sustainability targets.
