In the second quarter of 2026, the global ocean freight market is experiencing its strongest price surge since the pandemic. According to data from the Shanghai Shipping Exchange on June 18, the SCFI index rose for eight consecutive weeks to 3121.69 points, with a single-week increase of 136.47 points, up 4.57%. This rally has erased all losses from the first quarter and set a new high for the year. The price hikes cover major global routes, near-sea routes, and South America-Australia-New Zealand routes, leaving almost no price haven.
Freight Rates Surge Across the Board: US Routes Lead, South America Nears $10,000
US routes saw the most dramatic increases. The US West Coast rate reached $5,683 per FEU, up $582 in a single week, a weekly gain of 11.41%. The US East Coast rate hit $6,873 per FEU, up $552, approaching the $7,000 mark. Peak season surcharges commonly range from $1,000 to $1,500, further pushing up total logistics costs.
European and Mediterranean routes also rose. The rate for European base ports was $3,158 per TEU, while the Mediterranean base port rate was $4,260 per TEU. The Santos, South America route reached $8,212 per TEU, up $621 in a week, an 8.18% gain, approaching the psychological threshold of $10,000. The Australia-New Zealand route rose $72 to $1,808 per TEU.
Near-sea routes showed a mixed picture: Japan routes were flat, Southeast Asia edged up $7 to $689 per TEU, while the Korea route jumped $27 to $188 per TEU, indicating that price pressure is spreading to shorter routes.
For textile exporters, shipping a 40-foot container to the US now costs over $5,000. Given the relatively low value of textile goods, the freight cost share has jumped from 5-10% to 20-30%, directly eroding already thin profit margins.
Suez Canal Surcharge Hike: Structural Cost Pressure Intensifies
In addition to spot rate increases, the cost of transiting the Suez Canal is also rising. The Suez Canal Authority announced that from July 15, 2026, transit surcharges for most vessel types will increase by 12%, meaning an additional 12% on top of existing canal transit fees and surcharges.
The adjustments vary significantly: container ships will continue to pay a 12% surcharge; dry bulk carriers will see their surcharge rise from 10% to 22%; fully loaded crude oil and product tankers from 25% to 37%; and northbound car carriers from 14% to 26%.
This adjustment comes against a backdrop of rebounding Suez Canal traffic in 2026. According to Egypt's statistics authority, 1,182 vessels transited the canal in April 2026, a 14% year-on-year increase, with oil tanker traffic surging 28%. Canal revenue for the month was approximately $419 million, up 27% year-on-year, the highest monthly figure since early 2024.
The surcharge increase means that while the cost advantage of rerouting via the Cape of Good Hope is further eroded, the cost of using the canal is also rising. For textile exporters reliant on the Suez Canal, transportation costs are increasing regardless of which route they choose.
Textile Export Growth Stagnates: The 'Victim' of Freight Hikes is More Vulnerable
Customs data shows that in the first five months of 2026, China's total goods exports reached RMB 11.91 trillion, up 11.8% year-on-year. However, in the textile sector, national textile and apparel exports were $116.73 billion, up only 0.1%. Textile exports were $59.48 billion, up 1.7%, while apparel exports were $57.24 billion, down 1.6%.
This data reveals a harsh reality: the textile industry has not benefited from the overall export growth but is bearing the full brunt of surging freight costs. While other sectors can absorb higher freight costs through increased sales, textile companies have minimal profit margins left.
For most small and medium-sized textile exporters, pricing power is limited, making it difficult to pass on freight increases to overseas buyers. Some companies are forced to abandon long-term contracts and turn to the spot market, further exacerbating freight rate volatility.