U.S.-China deal to boost grain container shipments

20 May 20192 min reading

A deal ending the trade spat between the U.S. and China would boost container shipments of grain, wheat and soybeans, according to the head of Japan’s largest container-shipping company. While agricultural goods are typically transported in large volumes by bulk ships, there’s a rising trend toward using containers as they can move smaller quantities more efficiently and without the need for storage facilities, said Jeremy Nixon, chief executive officer of Ocean Network Express Pte. “If there is a breakthrough in the tariff situation, there’s actually pent-up demand for U.S. exports to China,” Nixon said in an interview published in Bloomberg. A more permanent pact could lead to “a return of U.S. exports on a stronger basis to China especially on agricultural products,” he said. The U.S. and China are in negotiations to reach an agreement to end the trade war that has roiled markets and threatened global growth. The spat also led to China buying more soybeans from South America, including Brazil and Argentina. China has said it may agree to purchase an additional $30 billion of U.S. agricultural products a year as part of a possible deal being negotiated, according to people with knowledge of the plan in February. BLOOMBERG

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