In the second quarter of 2026, the global ocean freight market did not cool down after the Strait of Hormuz reopened, but instead experienced an unexpectedly strong 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 increase of 4.57%, hitting a new high for the year. For textile exporters, this means that the profit margin on every shipment is being eroded by rising transportation costs.
The surge covers all routes, with US-bound lines leading the way
The current price hike is not a local adjustment but a synchronized rise across global main routes. The US West Coast rate has risen to $5,683 per FEU, with a weekly increase of 11.41%; the US East Coast rate is approaching $7,000, reported at $6,873 per FEU, up 8.73%. European base port rates rose 3.07% to $3,158 per TEU, while Mediterranean routes increased 2.11% to $4,260 per TEU. The Santos route in South America surged to $8,212 per TEU, a weekly increase of 8.18%. Although intra-Asian routes saw relatively moderate increases, the South Korea line jumped 16.8% to $188, and Southeast Asia edged up $7 to $689, while Japan routes remained flat.
What further worries shippers is that since June, several major shipping lines have imposed peak season surcharges on US routes, typically ranging from $1,000 to $1,500. This means the actual cost paid is much higher than the base freight rate, directly impacting textile and apparel exporters who rely on thin margins and high volumes.
Suez Canal surcharges rise, dry bulk rates double
Pressure also comes from the canal side. The Suez Canal Authority announced a 12% increase in transit surcharges for most vessel types, effective July 15. Among them, the surcharge for dry bulk carriers jumped from 10% to 22%, more than doubling. Container ships remain at 12%, but crude oil tankers rose from 25% to 37%, and car carriers on northbound voyages saw surcharges jump from 14% to 26%.
The Suez Canal Authority stated these surcharges are temporary and will be adjusted based on market conditions. However, it is noteworthy that in April 2026, canal traffic volume increased 14% year-on-year, and revenue hit a new high since early 2024 at $419 million. The canal's decision to raise prices during a market recovery clearly aims to maximize revenue, and these costs will eventually be passed on to the transportation of various goods, including textiles.
Textile exports edge up, freight costs erode profits
According to customs statistics, China's total goods exports in the first five months of 2026 increased 11.8% year-on-year, but textile and apparel exports only grew by 0.1%, with apparel exports even declining 1.6%. The textile industry has not enjoyed the benefits of overall trade growth but is bearing the brunt of surging freight costs.
For textile exporters, the current situation is awkward. On one hand, order price negotiations are already tough, and customers have low tolerance for price increases. On the other hand, freight rates can differ by thousands of dollars between weeks, making cost calculations almost like a guessing game. Some small and medium-sized enterprises have already started to refuse orders, because if freight rates continue to rise, order profits could disappear or even turn negative.