goldenequity
04-20-2018, 10:55 PM
China's nearly 200% tariff on imports of US sorghum is already having a profound impact on the global grain trade.
Since the tariff was imposed, the five shipments, which were all destined for China
when they were loaded at Texas Gulf Coast export terminals owned by grain merchants Cargill Inc and Archer Daniels Midland Co,
are now liable for a hefty deposit to be paid based on the value of the goods.
The payment would likely make the shipments unprofitable, according to Reuters (https://www.reuters.com/article/us-usa-trade-china-sorghum-exclusive/exclusive-u-s-sorghum-armada-u-turns-at-sea-after-china-tariffs-idUSKBN1HR03Z).
https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018.04.20sorghum.JPG?itok=hdB8qIW4
►The Panamanian-flagged ship called the N Bonanza, was churning its way northeast across the Indian Ocean earlier this week,
carrying more than 67,000 tonnes of sorghum from ADM’s elevator in Corpus Christi, Texas, according to Reuters shipping data.
Eleven hours after the anti-dumping deposits were announced, the ship stopped and then slowly tracked northwest.
►The RB Eden, a vessel carrying 70,223 tonnes of sorghum loaded at the same ADM terminal,
was headed east-northeast through the Indian Ocean off the coast of South Africa. It turned around.
►Hours later, the Stamford Eagle - hauling sorghum from Cargill’s elevator in Houston - turned around off the western coast of Mexico.
►At least two other vessels have also suddenly changed course: the Ocean Belt and Xing Xi Hai, both loaded at Cargill’s terminal.
It is unclear where the vessels are now heading. (that pretty much sums things up don't it :) )
https://www.zerohedge.com/news/2018-04-20/us-sorghum-armada-turns-away-china-after-tariffs
Since the tariff was imposed, the five shipments, which were all destined for China
when they were loaded at Texas Gulf Coast export terminals owned by grain merchants Cargill Inc and Archer Daniels Midland Co,
are now liable for a hefty deposit to be paid based on the value of the goods.
The payment would likely make the shipments unprofitable, according to Reuters (https://www.reuters.com/article/us-usa-trade-china-sorghum-exclusive/exclusive-u-s-sorghum-armada-u-turns-at-sea-after-china-tariffs-idUSKBN1HR03Z).
https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018.04.20sorghum.JPG?itok=hdB8qIW4
►The Panamanian-flagged ship called the N Bonanza, was churning its way northeast across the Indian Ocean earlier this week,
carrying more than 67,000 tonnes of sorghum from ADM’s elevator in Corpus Christi, Texas, according to Reuters shipping data.
Eleven hours after the anti-dumping deposits were announced, the ship stopped and then slowly tracked northwest.
►The RB Eden, a vessel carrying 70,223 tonnes of sorghum loaded at the same ADM terminal,
was headed east-northeast through the Indian Ocean off the coast of South Africa. It turned around.
►Hours later, the Stamford Eagle - hauling sorghum from Cargill’s elevator in Houston - turned around off the western coast of Mexico.
►At least two other vessels have also suddenly changed course: the Ocean Belt and Xing Xi Hai, both loaded at Cargill’s terminal.
It is unclear where the vessels are now heading. (that pretty much sums things up don't it :) )
https://www.zerohedge.com/news/2018-04-20/us-sorghum-armada-turns-away-china-after-tariffs