The Shanghai Shipping Exchange (SSE) released its latest Shanghai Containerized Freight Index (SCFI) composite index last Friday, showing the second drop of freight continuously. According to the shipping industry, as more ships return to Asia, supply has increased, demand has eased, and surcharges have fallen first.

The shipping industry pointed out that due to the seasonal factors of the Lunar New Year, the turnover rate has improved in American ports, and the supply of ships returning to Asia has increased recently.

In terms of demand, however, China is affected by the Beijing Winter Olympics in February. As the government strictly controls air pollution and further controls on epidemics, many factories have been shut down.

The shipping industry believed that it was normal for shipping prices to be relatively flexible in the short term because the trend of market prices will be more clear after factories back to work after the Lunar New Year.