In the second quarter of 2026, the global ocean freight market experienced its strongest post-pandemic surge. According to data from the Shanghai Shipping Exchange on June 18, the SCFI index rose for eight consecutive weeks, reaching 3121.69 points, with a weekly increase of 136.47 points or 4.57%, erasing all Q1 losses and hitting a new year high. For textile foreign trade companies, this means that already thin export profits are being continuously eroded by rising freight costs.
Background
The price surge covered all major global routes, including transpacific, Europe-Mediterranean, South America, Australia-New Zealand, and intra-Asia, with no obvious low-cost alternatives. US routes led the increase: US West Coast rates reached $5,683 per FEU, up $582 in a single week (11.41%); US East Coast rates hit $6,873 per FEU, approaching $7,000. European base port rates stood at $3,158 per TEU, Mediterranean at $4,260 per TEU. Santos, South America, reached $8,212 per TEU, up $621 (8.18%). Intra-Asia routes showed divergence: Japan rates remained flat, Southeast Asia edged up, while South Korea jumped $27 in a week, signaling that the price hike has spread to short-sea routes.
In addition to base rates, major shipping lines have been imposing peak season surcharges since June, especially on US routes, where surcharges commonly range from $1,000 to $1,500. This further burdens foreign trade companies.
The Suez Canal Authority recently announced new transit surcharge standards, with most vessel types facing a 12% increase, effective July 15, 2026. Container ships will continue to pay 12%; dry bulk carriers' surcharge rises from 10% to 22%; fully loaded crude and product tankers from 25% to 37%; empty tankers from 15% to 27%; car carriers subject to directional differences. The authority described these surcharges as temporary, adjustable based on market conditions.
Industry Impact
The Suez Canal's rate adjustment comes against a unique backdrop. After the 2026 US-Iran war disrupted navigation through the Strait of Hormuz, vessels shifted to alternative routes including the Red Sea, indirectly boosting Suez Canal traffic. According to Egypt's Central Agency for Public Mobilization and Statistics, total vessel transits in April 2026 reached 1,182, up 14% year-on-year, including 529 oil tankers, a 28% surge. Canal revenue for the month hit $419 million, up 27% year-on-year, the highest since early 2024.
For the textile industry, this is a double blow. Customs data shows that in the first five months of 2026, China's total goods exports rose 11.8% year-on-year, but textile exports were sluggish. From January to May, textile and apparel exports totaled $116.73 billion, up only 0.1%. Textile exports were $59.48 billion (+1.7%), while apparel exports were $57.24 billion (-1.6%). Textile companies have not benefited from the overall export growth but are bearing the full brunt of soaring freight costs and surcharges.
The combined effect of base rate increases and surcharges means that for low-value-added textile orders, transportation costs may now account for 20% to 30% or more of the order value. This forces textile exporters to reassess their profit models, with some long-term contracts potentially facing losses.