In the second quarter of 2026, the global ocean freight market experienced its strongest post-pandemic price surge. According to data from the Shanghai Shipping Exchange on June 18, the SCFI index rose for eight consecutive weeks to 3121.69 points, up 4.57% in a single week, hitting a new year high. The US West Coast rate jumped $582 to $5683/FEU in one week, while the US East Coast rate approached $7000. For textile exporters operating on thin margins, this means thousands of dollars of profit are being eaten away per container.
Event Background The Suez Canal Authority recently announced new surcharge standards, effective July 15, 2026, raising transit surcharges by 12% for most vessel types. Container ships will continue to pay a 12% surcharge, but dry bulk carriers see a jump from 10% to 22%, crude oil tankers from 25% to 37%, and car carriers on northbound routes from 14% to 26%. These adjustments are temporary but send a clear signal: shipping costs will not ease in the short term.
This price surge is not an isolated event. Despite the reopening of the Strait of Hormuz after US-Iran negotiations, freight rates have not fallen as expected. During the 2026 US-Iran conflict, vessels diverted to Red Sea routes, boosting Suez Canal traffic. Egypt's statistics agency reported 1182 ships transited the canal in April 2026, up 14% year-on-year, including 529 oil tankers, a 28% increase. Canal revenue hit $419 million, the highest since early 2024, up 27% year-on-year.
Industry Impact The price increases cover all major routes—transpacific, Europe, South America, Australia-New Zealand, and intra-Asia—with no obvious safe haven. US routes lead the surge, while the Santos route in South America hit $8212/TEU, up 8.18% in one week. Intra-Asia routes show divergence: Japan rates are flat, but South Korea jumped $27 in a week, and Southeast Asia edged up. This means textile exporters face rising costs regardless of destination.
China Customs data shows textile and apparel exports reached $116.73 billion in the first five months of 2026, up only 0.1% year-on-year. Textile exports grew 1.7%, while apparel exports fell 1.6%. The overall export growth lags far behind the 11.8% increase in total merchandise trade. Textile companies are squeezed from both sides: they miss out on the export boom yet bear the full brunt of rising freight costs.
Peak season surcharges add further pressure. Since June, major shipping lines have imposed surcharges of $1000-1500 on US routes. Combined with base rates, the total cost of shipping a 40-foot container to the US West Coast now exceeds $7000. For low-value textile products where freight accounts for a high proportion of total cost, such increases are nearly impossible to pass on to buyers.