In the second quarter of 2026, the global shipping market experienced its strongest surge since the pandemic. According to data from the Shanghai Shipping Exchange on June 18, the SCFI index rose for eight consecutive weeks, reaching 3121.69 points, a single-week increase of 4.57%, setting a new high for the year. For textile exporters, this surge means that already thin profit margins are being continuously eroded by rising freight costs.
Freight Rates Surge Across the Board, US Routes Break $7,000
The price increase covers almost all major routes with no safe havens. The US West Coast rate jumped to $5,683 per FEU, up 11.41% in a single week; the US East Coast rate approached $7,000, reaching $6,873 per FEU. European base port rates stabilized at $3,158 per TEU, while Mediterranean rates remained high at $4,260 per TEU. The South American Santos route hit $8,212 per TEU, up 8.18% in a week.
Near-sea routes showed divergence: Japan rates were flat, Southeast Asia rose slightly by $7, while the Korea line jumped $27, indicating the price hike is spreading from deep-sea to short-sea routes. Major shipping lines also imposed peak-season surcharges in June, with US route surcharges generally between $1,000 and $1,500, further burdening exporters.
Suez Canal Raises Surcharges by 12%
The Suez Canal Authority announced a 12% increase in surcharges for most vessel types, effective July 15, 2026. Container ship surcharges remain at 12%, but bulk carriers rose from 10% to 22%, crude oil tankers from 25% to 37%, and northbound car carriers from 14% to 26%.
The Authority called this a temporary measure, but industry analysts believe that with Red Sea geopolitical risks persisting and vessels returning to the Red Sea route after the Strait of Hormuz reopened, canal traffic is recovering. Egyptian data shows that in April 2026, total vessels passing through the Suez Canal increased 14% year-on-year, with oil tankers up 28%, generating $419 million in revenue, up 27%—the highest monthly figure since early 2024.
Textile Exports Edge Up, Freight Pressure Disproportionate
Chinese customs data shows that in the first five months of 2026, total goods exports grew 11.8% year-on-year, but textile and apparel exports only inched up 0.1% to $116.73 billion. Textile exports were $59.48 billion (up 1.7%), while apparel exports fell 1.6% to $57.24 billion.
This means the textile sector did not benefit from the overall export boom but still bore the brunt of soaring freight costs. For thin-margin textile products, a single-week increase of $582 on a US West Coast container equals the freight cost of nearly 60 garments priced at $10 each.