Global ocean freight rates experienced their most aggressive surge since the pandemic in Q2 2026. According to data released by the Shanghai Shipping Exchange on June 18, the SCFI index rose for eight consecutive weeks to 3121.69 points, with a weekly gain of 4.57%, erasing all losses from the first quarter and hitting a new year-to-date high. For textile exporters, this means already thin profit margins are being further eroded by rising logistics costs.
Rates Surge Across All Routes, US Lines Lead
The current price hike covers major global routes including transpacific, Europe, South America, and Australasia, leaving no significant low-cost corridors. The US West Coast rate jumped $582 per FEU to $5,683, a weekly increase of 11.41%. The US East Coast rate rose $552 to $6,873 per FEU, approaching the $7,000 mark. Europe base port rates reached $3,158 per TEU, while Mediterranean base ports hit $4,260 per TEU. South America's Santos route climbed $621 to $8,212 per TEU, up 8.18%. Australasia also strengthened, rising $72 to $1,808 per TEU. In the near-sea segment, Japan routes remained flat, while South Korea rates jumped $27, signaling spreading price pressure.
Since June, major shipping lines have imposed peak-season surcharges, particularly on US routes, with additional fees commonly ranging from $1,000 to $1,500. This means the actual logistics cost borne by exporters is significantly higher than the base freight rate, further compressing order profitability.
Suez Canal Surcharge Hike Adds to Costs
Beyond ocean freight increases, the Suez Canal Authority has announced a new surcharge standard effective July 15, 2026, raising additional fees by 12% for most vessel types. Container ships will continue paying a 12% surcharge; dry bulk carriers see their surcharge rise from 10% to 22%; fully loaded oil tankers from 25% to 37%; and LNG carriers from 7% to 19%. This adjustment comes after the 2026 US-Iran conflict disrupted Hormuz Strait traffic, redirecting vessels to Red Sea routes and boosting Suez Canal transits. According to Egypt's official data, 1,182 vessels passed through the canal in April 2026, up 14% year-on-year, with tanker traffic surging 28%. Canal revenue reached approximately $419 million in April, up 27% year-on-year, the highest monthly figure since early 2024.
Textile Export Growth Stalls, Freight Costs Bite
China Customs data shows that in the first five months of 2026, national textile and apparel exports reached $116.73 billion, up only 0.1% year-on-year. Textile exports were $59.48 billion (+1.7%), while apparel exports totaled $57.24 billion (-1.6%). Compared with China's overall export growth of 11.8%, the textile sector lags significantly. This creates a painful reality: textile enterprises did not benefit from the broader export boom but must absorb rising freight costs. Small and medium exporters in industrial clusters like Keqiao, Shengze, and Nantong are especially vulnerable, as their thin margins leave little room to absorb cost increases. Some have begun negotiating cost-sharing with buyers, with mixed results.