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American ship carrying $20mn in soybeans in sea limbo, a victim of US-China trade war
Link: https://www.rt.com/news/435687-us-cargo-ship-soybeans-china/
. A US cargo ship carrying $20 million worth of soybeans has been circling in the ocean for a month because it was unlucky to arrive a few hours after tariffs kicked in.
The Peak Pegasus cargo ship, owned by JPMorgan Asset Management, left Seattle for China June 8. arriving five hours after Beijing's tariffs on US goods kicked in on July 6. As a result, it has now found itself drifting in circles in the Yellow Sea costing the owner of the cargo – agricultural commodity trading house Louis Dreyfus $12,500 a day to charter the ship; $400,000 in extra costs.
The soybean saga comes after Beijing imposed duties on $34 billion in US goods, in response to Trump's imposing of tariffs on Chinese goods. The dispute escalated Wednesday, with Washington announcing new $16 billion wave of tariffs would take effect August 23. Responding to that announcement, China imposed 25 percent tariffs on another 333 US products, scheduled to take effect August 23. If the ship were to offload the soybeans now, it would face a 25 percent tariff, adding $6 million to the cost of bringing them into China. Another soybean ship, the Star Jennifer, has also been hanging around the waters for a fortnight.
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