In the second quarter of 2026, the global ocean freight market experienced an unexpected surge. Despite the reopening of the Strait of Hormuz, freight rates accelerated instead of declining. Data from the Shanghai Shipping Exchange on June 18 showed the SCFI index rising for eight consecutive weeks to 3121.69 points, with a single-week increase of 4.57%, hitting a new high for the year. The price hike covered almost all major routes with no obvious price shelters.
Comprehensive Freight Increases
The US routes were hit hardest. The US West Coast rate reached $5,683/FEU, up $582 in one week, a weekly increase of 11.41%. The US East Coast rate rose to $6,873/FEU, up $552, an 8.73% increase, approaching the $7,000 mark. European base port rates reached $3,158/TEU, up $94, while Mediterranean rates hit $4,260/TEU, up $88. The Santos route in South America soared to $8,212/TEU, up 8.18% in a single week. Even the previously stable intra-Asia routes began to show increases, with the Korea line jumping $27 to $188/TEU.
Suez Canal Surcharges
The Suez Canal Authority announced new transit surcharge standards effective July 15, 2026. Most vessel types face a 12% increase. Bulk carriers see surcharges rise from 10% to 22%; fully loaded crude and product tankers from 25% to 37%; empty tankers from 15% to 27%. Container vessels continue to pay 12% surcharges, but the higher base freight rates mean actual costs increase further.
Textile Export Squeeze
China's General Administration of Customs reported total foreign trade of 20.68 trillion yuan in the first five months of 2026, up 15.3% year-on-year. Exports grew 11.8% to 11.91 trillion yuan. However, textile and apparel exports totaled only $116.73 billion, a mere 0.1% increase. Textile exports grew 1.7% to $59.48 billion, while apparel exports fell 1.6% to $57.24 billion. Textile enterprises, with thin profit margins, are bearing the full brunt of rising freight costs.
Market Dynamics
Suez Canal traffic data reveals the logic behind the price hikes. In April 2026, 1,182 vessels transited the canal, up 14% year-on-year, with oil tanker transits surging 28% to about 529 vessels. Canal revenue reached $419 million, up 27%, the highest since early 2024. This revenue growth, combined with tight global shipping capacity, gives carriers stronger pricing power.