In the second quarter of 2026, the global ocean freight market did not cool down after the reopening of the Strait of Hormuz. Instead, it experienced the strongest post-pandemic surge. The SCFI index released by the Shanghai Shipping Exchange on June 18 hit 3121.69 points, with a weekly gain of 4.57%, erasing all losses from the first quarter and setting a new year-to-date high. For textile exporters heavily reliant on maritime shipping, logistics costs are now jumping by thousands of dollars per week, directly eroding already thin order margins.
Rates Surge Across All Routes
This round of price hikes is not limited to a single route but covers major global trunk lines and nearby routes. The US West Coast route saw the most dramatic increase: a 40-foot container reached $5,683, up $582 or 11.41% in one week. The US East Coast route approached $7,000, reaching $6,873, up $552. European base port rates rose to $3,158/TEU, while the Mediterranean route hit $4,260/TEU. The Santos route in South America broke through $8,000/TEU to $8,212, up 8.18% weekly.
- Near-sea routes showed divergence: Japan routes (Kanto/Kansai) remained flat at around $330/TEU; Southeast Asia edged up to $689/TEU; South Korea jumped $27 to $188/TEU, indicating the price hike is spreading from deep-sea to regional routes.
- Major carriers have been adding peak season surcharges since June, particularly on US routes, with surcharges commonly ranging from $1,000 to $1,500.
Suez Canal Surcharge Increase
Against the backdrop of soaring ocean freight, the Suez Canal Authority announced new transit surcharges effective July 15. Most vessel types will see a 12% increase. Specifically, container ships maintain a 12% surcharge; dry bulk carriers see a jump from 10% to 22%; laden tankers from 25% to 37%; and car carriers on northbound voyages from 14% to 26%.
This adjustment comes as canal traffic rebounds significantly. Egypt's statistics agency reported that 1,182 vessels passed through the canal in April 2026, up 14% year-on-year, with oil tanker traffic surging 28%. Canal revenue reached $419 million in April, up 27% year-on-year, the highest monthly figure since early 2024. The disruption in the Strait of Hormuz diverted ships to routes via the Red Sea, indirectly boosting Suez Canal traffic.
Textile Exporters Squeezed
China's General Administration of Customs reported that total exports in the first five months of 2026 rose 11.8% to RMB 11.91 trillion. However, textile and apparel exports lagged significantly: from January to May, textile and apparel exports totaled $116.73 billion, up only 0.1% year-on-year. Within this, textile exports were $59.48 billion (up 1.7%), while apparel exports fell 1.6% to $57.24 billion.
This means textile enterprises have not benefited from the overall trade boom but are bearing the full brunt of soaring freight costs. For orders with typical profit margins of only 3-5%, a single container's freight fluctuation can push an order from profit to loss. The uncertainty in freight rates makes pricing extremely difficult—with weekly quotes differing by thousands of dollars, exporters face a dilemma between taking orders at risk of loss or losing customers.