China Shipping Companies Lobby to Foil Vale’s Iron Ore Fleet
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China’s largest shipping companies are lobbying the government to foil Vale SA’s plan to build a $2.3 billion fleet of the world’s biggest iron ore carriers that will haul the steelmaking material to the nation.
Vale, the world’s largest iron-ore producer, should engage the shipping companies to run the fleet, Zhang Shouguo, executive vice chairman of the China Shipowners Association, said in a telephone interview. Rio de Janeiro-based Vale is building 19 of the 400,000-ton vessels and will control another 16 under long-term contracts, aiming to stabilize freight costs and iron ore prices.