In the second quarter of 2026, global ocean freight markets experienced the strongest post-pandemic surge. According to data from the Shanghai Shipping Exchange on June 18, the SCFI index rose for eight consecutive weeks to 3,121.69 points, with a weekly gain of 4.57%, erasing all losses from the first quarter and setting a new high for the year. More worryingly for textile exporters, the Suez Canal Authority announced a 12% increase in transit surcharges for most vessel types, effective July 15.
Rates Surge Across the Board, US Routes Lead
The current rate hike covers all major routes, including transpacific, Europe, South America, and Australia-New Zealand, with no obvious price refuge. The US West Coast rate for a 40-foot container reached $5,683, up $582 week-on-week, an 11.41% increase. The US East Coast rate approached $7,000, settling at $6,873. European base port rates stood at $3,158 per TEU, while Mediterranean rates reached $4,260. The Santos, Brazil route broke through $8,000, hitting $8,212 per TEU, up $621 week-on-week.
Intra-Asian routes showed a mixed picture: Japan routes were flat, Southeast Asia edged up $7, but the Korea route jumped $27 to $188, signaling that the price hike is spreading to shorter-haul lanes. Major carriers have also imposed peak season surcharges of $1,000-$1,500 on US routes since June.
Suez Canal Surcharges Rise Structurally
The new Suez Canal surcharge schedule shows container ships maintaining a 12% surcharge, but dry bulk carriers see their surcharge jump from 10% to 22%. Laden crude and product tankers face an increase from 25% to 37%, while LPG and chemical tankers rise from 20% to 32%. This adjustment comes as traffic through the canal rebounded after the 2026 US-Iran conflict disrupted Hormuz Strait passages. Egyptian statistics show canal ship transits rose 14% year-on-year in April 2026, with oil tanker traffic up 28%, generating the highest monthly revenue since early 2024.
Textile Exports Flat, Profits Squeezed
Customs data shows China's total exports grew 11.8% in the first five months of 2026, but textile and apparel exports edged up only 0.1% to $116.73 billion. Textile exports rose 1.7% while apparel exports fell 1.6%. With volumes essentially flat, textile exporters are absorbing the full impact of rising freight costs without the benefit of higher sales. The impact is structural: low-value-added products see freight costs account for 15%-25% of cargo value, making some orders unprofitable. Emerging markets like the Middle East and South America, which had been growth drivers, now face the highest rate increases.