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https://metro.co.uk/2018/08/09/huge...cles-for-a-month-because-it-was-late-7818839/
Huge cargo ship has been going round in circles for a month because it was 30 minutes late
Bradley JollyThursday 9 Aug 2018 2:10 pm
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A massive cargo ship has been moving around aimlessly in the sea for one month — because it was half an hour late to reach its port.
The Peak Pegasus set off with more than £15million ($20million) worth of soya beans from the US.
It intended to reach Dalian, north-east China, on July 6 to offload the 70,000 tonnes of beans.
The ship was supposed to arrive at Dalian, China, but got there too late (Picture: Imaginechina/REX/Shutterstock)
But the US and China imposed tariffs on each other at the start of July in a tense trade war. Beijing put strict levies on US imports of around $34bn (£25.7bn).
And the 43,000-tonne Peak Pegasus was minutes too late to clear customs before the tariffs were introduced and has been bobbing about in the Yellow Sea ever since.
It is understood the owner of the beans has been deciding what to do about the situation – but it is allegedly costing the agricultural firm some $12,500 (£9,600) each day to continue to charter the ship. It means the extra distance added to the voyage has cost more than $400,000 (£310,000).
The market price of US soya beans has slumped since the trade war began.
But the ship has become an unlikely star on social media since the news emerged.
Graphics show its endless laps in the area.
The boat remains bobbing about near Dalian’s coast (Picture: Xinhua News Agency/PA Images)
https://www.theguardian.com/busines...-drifts-off-china-victim-of-trade-war-with-us
Giant shipload of soya beans circles off China, victim of trade war with US
Peak Pegasus became unlikely hit on Chinese social media as it tried to beat tariff deadline
Rob Davies and Larry Elliott
Wed 8 Aug 2018 18.03 BST Last modified on Thu 9 Aug 2018 13.30 BST
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991
The ship was due to unload 70,000 tonnes of American soya beans in the Chinese port of Dalian. Photograph: Bloomberg/Bloomberg via Getty Images
A shipment of soya beans worth more than $20m (£15.5m) has been bobbing aimlessly in the Pacific Ocean for a month, a casualty of the escalating trade war between China and the US.
Lingering uncertainty over the cargo’s fate offered a timely reminder of the fallout from a dispute that intensified on Wednesday, as the US president, Donald Trump, unveiled a second round of tariffs on $16bn of Chinese goods, prompting Beijing to respond in kind.
China hits back against latest US tariffs; pound hit by Brexit worries – as it happened
Read more
The Peak Pegasus, a 229 metre bulk carrier weighing 43,000 tonnes, has become the reluctant symbol of the potential consequences of this tit-for-tat trade spat.
The ship, owned by JP Morgan Asset Management, was scheduled to unload about 70,000 tonnes of American soya beans in the Chinese port of Dalian on 6 July, shortly after Trump imposed a first round of tariffs on $34bn-worth of goods.
As it rushed to shore in the hope of clearing customs before Beijing imposed retaliatory tariffs, the ship – and its protein-rich cargo – became an unlikely internet sensation on the Chinese social media platform Weibo.
However, the vessel arrived just too late and has been sailing around in circles ever since while the cargo’s owners, understood to be the agricultural commodity trading house Louis Dreyfus, decide what to do.
The Amsterdam-based company is thought to be paying about $12,500 a day to continue chartering the ship, which is idling in the Yellow Sea off the coast of China, indicating extra costs so far of more than $400,000.
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The Peak Pegasus cargo ship has been sailing in circles since it arrived, as shown on this Thomson Reuters tracking plot. Photograph: Thomson Reuters
Commodities experts said it could still make financial sense to keep the beans at sea, potentially for months, given the risk of making the wrong decision about what do next.
Business Today: sign up for a morning shot of financial news
Read more
The market price of US soya beans has slumped since the trade war began as firms from China, the world’s largest importer, sought alternative sources.
That means potential alternative buyers for Louis Dreyfus’s soya beans in Europe or elsewhere would probably demand a discount on what they would have sold for originally.
Offloading them in China would incur a 25% tariff, adding around $6m to the cost of bringing them into the country.
“They [the cargo’s owners] have clearly got in mind the 25% tariff to take the goods into China and they’ll be weighing that against alternative buyers asking for a massive discount potentially equivalent to that,” said Michael Magdovitz, an analyst at Rabobank.
“They’d also have to pay an exorbitant price to divert the vessel from China to another destination.”
Soya beans are crucial for the production of cooking oil, biodiesel and meal used to feed livestock, including pigs reared to satisfy China’s appetite for pork.
One factor complicating the fate of the soya beans is uncertainty about the length of time that China can realistically switch to Brazilian soya beans as an alternative.
“The problem for the Chinese is that Brazil quickly runs out of soybeans around this time of year,” said Magdovitz. “It can’t be the only source for China.”
China accelerated imports before the tariffs came into force in order to build stocks and hold off paying the tax.
Magdovitz said the Peak Pegasus – and another soya bean-laden ship called the Star Jennifer that has also been idling offshore for a fortnight – could be waiting in the hope that China decides to subsidise soya bean importers.
That could render US imports affordable again, allowing the resumption of a soya bean trade worth $12.7bn a year.
Beijing blamed Trump for the escalation in the trade war as it announced 25% tariffs on another 333 separate US products from 23 August.
“This is a very unreasonable practice,” China’s commerce ministry said in response to Washington’s decision to target the additional $16bn of imports.
China said it would retaliate with 25% tariffs of its own on an equivalent amount of American imports, including steel, fuel, cars and medical products.
China and the US imposed tariffs on $34bn of each other’s goods in June and the latest move underlined Beijing’s determination to match protectionist measures like for like.
Shares on Wall Street opened slightly lower as fears that Trump will now make good on his threat to target a further $200bn of Chinese goods dented investor confidence.
The ratings agency S&P has expressed concerns that the trade war could spill over into services because China is running out of American goods to hit with tariffs.
The first Chinese trade figures since the imposition of the first round of US tariffs in early July showed that the country’s annual export growth edged up from 11.2% to 12.2% last month when measured in dollar terms.
The Guardian has approached Louis Dreyfus for comment. JP Morgan declined to comment.
https://www.businessinsider.sg/peak...ictim-of-us-china-trade-war-2018-8/?r=UK&IR=T
A US cargo ship has been drifting off the coast of China for a month — and it shows the real-world effects of the trade war
Michael Selby-Green, Business Insider US
August 9, 2018
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The frustrated voyage of the Peak Pegasus Samantha Lee / Business Insider
The Peak Pegasus, which is owned by JPMorgan Asset Management, left Seattle on June 8 on a monthlong voyage to the northeastern Chinese city of Dalian. The trade war between the US and China was erupting just as it left, with President Donald Trump imposing tariffs on billions of dollars’ worth of Chinese imports.
The US ship was due to deliver its 70,000-tonne cargo on July 6, The Guardian reported, but missed the tariff deadline. The Peak Pegasus arrived about five hours after China imposed retaliatory tariffs on US goods including soybeans.
The cargo belongs to the agricultural commodity trading house Louis Dreyfus. It is estimated to be paying about $12,500 a day to continue chartering the ship, meaning the company has already paid about $400,000 in extra costs since the ship arrived.
Commodities experts told The Guardian it could still make financial sense to keep the shipment at sea. The tariff China applied to soybeans just before the ship arrived is 25%, which would add about $6 million to the cost of importing the soybeans.
The US-China trade dispute continued Wednesday, with the US announcing that a new $16 billion wave of tariffs would take effect August 23.
China’s Commerce Ministry described the new tariffs as “very unreasonable practice,” and Beijing responded with 25% tariffs on another 333 US products, also scheduled for August 23.
Huge cargo ship has been going round in circles for a month because it was 30 minutes late
Bradley JollyThursday 9 Aug 2018 2:10 pm
Share this article via facebookShare this article via twitterShare this article via google
176Shares
A massive cargo ship has been moving around aimlessly in the sea for one month — because it was half an hour late to reach its port.
The Peak Pegasus set off with more than £15million ($20million) worth of soya beans from the US.
It intended to reach Dalian, north-east China, on July 6 to offload the 70,000 tonnes of beans.
The ship was supposed to arrive at Dalian, China, but got there too late (Picture: Imaginechina/REX/Shutterstock)
But the US and China imposed tariffs on each other at the start of July in a tense trade war. Beijing put strict levies on US imports of around $34bn (£25.7bn).
And the 43,000-tonne Peak Pegasus was minutes too late to clear customs before the tariffs were introduced and has been bobbing about in the Yellow Sea ever since.
It is understood the owner of the beans has been deciding what to do about the situation – but it is allegedly costing the agricultural firm some $12,500 (£9,600) each day to continue to charter the ship. It means the extra distance added to the voyage has cost more than $400,000 (£310,000).
The market price of US soya beans has slumped since the trade war began.
But the ship has become an unlikely star on social media since the news emerged.
Graphics show its endless laps in the area.
The boat remains bobbing about near Dalian’s coast (Picture: Xinhua News Agency/PA Images)
https://www.theguardian.com/busines...-drifts-off-china-victim-of-trade-war-with-us
Giant shipload of soya beans circles off China, victim of trade war with US
Peak Pegasus became unlikely hit on Chinese social media as it tried to beat tariff deadline
Rob Davies and Larry Elliott
Wed 8 Aug 2018 18.03 BST Last modified on Thu 9 Aug 2018 13.30 BST
Shares
991
The ship was due to unload 70,000 tonnes of American soya beans in the Chinese port of Dalian. Photograph: Bloomberg/Bloomberg via Getty Images
A shipment of soya beans worth more than $20m (£15.5m) has been bobbing aimlessly in the Pacific Ocean for a month, a casualty of the escalating trade war between China and the US.
Lingering uncertainty over the cargo’s fate offered a timely reminder of the fallout from a dispute that intensified on Wednesday, as the US president, Donald Trump, unveiled a second round of tariffs on $16bn of Chinese goods, prompting Beijing to respond in kind.
China hits back against latest US tariffs; pound hit by Brexit worries – as it happened
Read more
The Peak Pegasus, a 229 metre bulk carrier weighing 43,000 tonnes, has become the reluctant symbol of the potential consequences of this tit-for-tat trade spat.
The ship, owned by JP Morgan Asset Management, was scheduled to unload about 70,000 tonnes of American soya beans in the Chinese port of Dalian on 6 July, shortly after Trump imposed a first round of tariffs on $34bn-worth of goods.
As it rushed to shore in the hope of clearing customs before Beijing imposed retaliatory tariffs, the ship – and its protein-rich cargo – became an unlikely internet sensation on the Chinese social media platform Weibo.
However, the vessel arrived just too late and has been sailing around in circles ever since while the cargo’s owners, understood to be the agricultural commodity trading house Louis Dreyfus, decide what to do.
The Amsterdam-based company is thought to be paying about $12,500 a day to continue chartering the ship, which is idling in the Yellow Sea off the coast of China, indicating extra costs so far of more than $400,000.
Facebook Twitter Pinterest
The Peak Pegasus cargo ship has been sailing in circles since it arrived, as shown on this Thomson Reuters tracking plot. Photograph: Thomson Reuters
Commodities experts said it could still make financial sense to keep the beans at sea, potentially for months, given the risk of making the wrong decision about what do next.
Business Today: sign up for a morning shot of financial news
Read more
The market price of US soya beans has slumped since the trade war began as firms from China, the world’s largest importer, sought alternative sources.
That means potential alternative buyers for Louis Dreyfus’s soya beans in Europe or elsewhere would probably demand a discount on what they would have sold for originally.
Offloading them in China would incur a 25% tariff, adding around $6m to the cost of bringing them into the country.
“They [the cargo’s owners] have clearly got in mind the 25% tariff to take the goods into China and they’ll be weighing that against alternative buyers asking for a massive discount potentially equivalent to that,” said Michael Magdovitz, an analyst at Rabobank.
“They’d also have to pay an exorbitant price to divert the vessel from China to another destination.”
Soya beans are crucial for the production of cooking oil, biodiesel and meal used to feed livestock, including pigs reared to satisfy China’s appetite for pork.
One factor complicating the fate of the soya beans is uncertainty about the length of time that China can realistically switch to Brazilian soya beans as an alternative.
“The problem for the Chinese is that Brazil quickly runs out of soybeans around this time of year,” said Magdovitz. “It can’t be the only source for China.”
China accelerated imports before the tariffs came into force in order to build stocks and hold off paying the tax.
Magdovitz said the Peak Pegasus – and another soya bean-laden ship called the Star Jennifer that has also been idling offshore for a fortnight – could be waiting in the hope that China decides to subsidise soya bean importers.
That could render US imports affordable again, allowing the resumption of a soya bean trade worth $12.7bn a year.
Beijing blamed Trump for the escalation in the trade war as it announced 25% tariffs on another 333 separate US products from 23 August.
“This is a very unreasonable practice,” China’s commerce ministry said in response to Washington’s decision to target the additional $16bn of imports.
China said it would retaliate with 25% tariffs of its own on an equivalent amount of American imports, including steel, fuel, cars and medical products.
China and the US imposed tariffs on $34bn of each other’s goods in June and the latest move underlined Beijing’s determination to match protectionist measures like for like.
Shares on Wall Street opened slightly lower as fears that Trump will now make good on his threat to target a further $200bn of Chinese goods dented investor confidence.
The ratings agency S&P has expressed concerns that the trade war could spill over into services because China is running out of American goods to hit with tariffs.
The first Chinese trade figures since the imposition of the first round of US tariffs in early July showed that the country’s annual export growth edged up from 11.2% to 12.2% last month when measured in dollar terms.
The Guardian has approached Louis Dreyfus for comment. JP Morgan declined to comment.
https://www.businessinsider.sg/peak...ictim-of-us-china-trade-war-2018-8/?r=UK&IR=T
A US cargo ship has been drifting off the coast of China for a month — and it shows the real-world effects of the trade war
Michael Selby-Green, Business Insider US
August 9, 2018
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Share to WhatsAppWhatsAppShare to FacebookFacebookShare to TwitterTwitterShare to LinkedInLinkedInShare to WeChatWeChat
- A US cargo ship carrying $20 million worth of soybeans has been circling off the Chinese coast for over a month.
- The ship became an internet sensation on Chinese social media as it raced to deliver its cargo last month before new Beijing tariffs took effect.
- The ship, called the Peak Pegasus, has been drifting in circles off the coast of the northeast city of Dalian ever since it failed to beat the tariffs.
- Peak Pegasus is a casualty of the US-China trade war.
The Peak Pegasus, which is owned by JPMorgan Asset Management, left Seattle on June 8 on a monthlong voyage to the northeastern Chinese city of Dalian. The trade war between the US and China was erupting just as it left, with President Donald Trump imposing tariffs on billions of dollars’ worth of Chinese imports.
The US ship was due to deliver its 70,000-tonne cargo on July 6, The Guardian reported, but missed the tariff deadline. The Peak Pegasus arrived about five hours after China imposed retaliatory tariffs on US goods including soybeans.
The ship has been off the coast of Dalian ever since and is now drifting in circles at 0.1 knots.
The ship – a 47,400-ton, 750-foot-long bulk carrier – has become a symbol of the disruption caused by the trade war between Beijing and Washington. It became a sensation on the Chinese social-media site Weibo, according to The Guardian.The cargo belongs to the agricultural commodity trading house Louis Dreyfus. It is estimated to be paying about $12,500 a day to continue chartering the ship, meaning the company has already paid about $400,000 in extra costs since the ship arrived.
Commodities experts told The Guardian it could still make financial sense to keep the shipment at sea. The tariff China applied to soybeans just before the ship arrived is 25%, which would add about $6 million to the cost of importing the soybeans.
The US-China trade dispute continued Wednesday, with the US announcing that a new $16 billion wave of tariffs would take effect August 23.
China’s Commerce Ministry described the new tariffs as “very unreasonable practice,” and Beijing responded with 25% tariffs on another 333 US products, also scheduled for August 23.
