In the second quarter of 2026, the global shipping market experienced its strongest post-pandemic surge. According to public 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, setting a new year-to-date high. For the textile export industry, already operating on thin margins, this wave of price increases carries significant implications.
The Logic Behind the Surge: From the Strait of Hormuz to the Suez Canal
Rate increases covered all major routes with no obvious safe havens. The US West Coast rate jumped $582 per FEU to $5,683, while the US East Coast approached $7,000 per FEU. European base ports reached $3,158 per TEU, and Mediterranean routes stabilized at $4,260 per TEU. Notably, the Santos route in South America hit $8,212 per TEU, up 8.18% in a single week.
Near-sea routes showed divergence: Japan rates remained flat, but South Korea jumped $27 per TEU to $188, while Southeast Asia edged up $7. This uneven pattern suggests the surge is not broad inflation but supply-demand imbalances on specific routes.
In June, the Suez Canal Authority announced new transit surcharges, maintaining the 12% fee for container ships but raising dry bulk rates from 10% to 22% and tanker surcharges to as high as 37%. This adjustment came as April 2026 transit volume grew 14% year-on-year, generating $419 million in revenue—the highest monthly figure since early 2024.
Textile Exports: A Slow Squeeze
China Customs data shows textile and apparel exports reached $116.73 billion in the first five months of 2026, up a mere 0.1% year-on-year. Textile exports grew 1.7% to $59.48 billion, while apparel exports fell 1.6% to $57.24 billion.
Compared to the overall export growth of 11.8%, the textile sector clearly lagged. This means textile companies are bearing the full cost of rising freight rates without enjoying the benefits of export growth.
Crucially, this surge is not a short-term fluctuation. After US-Iran talks reopened the Strait of Hormuz, rates did not fall as expected but continued rising due to peak season surcharges. The Suez Canal surcharge hike further pushed up Europe-Mediterranean route costs. For textile exporters reliant on sea freight, this is like an extra toll on already thin margins.
Practical Recommendations: Navigating High Freight Costs
For Buyers - Reassess quotation cycles: Incorporate freight volatility into pricing formulas, using a base rate plus floating surcharge model to avoid losses from sudden rate jumps. - Optimize order structure: Reduce reliance on high-cost US and Europe-Mediterranean routes, and increase orders from near-sea markets with relatively stable rates. - Lock in capacity early: Sign long-term contracts with freight forwarders to secure space and rates, reducing risk from spot market volatility.
For Export Companies - Strengthen logistics cost control: Establish a freight rate monitoring mechanism, tracking SCFI index changes to time shipments during lower rate periods. - Explore alternative transport options: For non-urgent orders, consider rail or sea-rail intermodal transport to reduce dependence on single shipping routes. - Adjust market strategy: Focus on high-margin markets like South America and Australia-New Zealand, while monitoring how Suez Canal surcharge adjustments affect different routes.
This rate surge is essentially a supply chain restructuring triggered by geopolitical tensions. Textile companies must recognize that the era of low freight costs may be over, and future competition will increasingly hinge on logistics efficiency and cost management capabilities.